In testimony before the House Financial Services Committee, FDIC Chair Jelena McWilliams reviewed the agency’s response to economic risks posed by COVID-19. She reported progress on enhancing resolution readiness, supporting communities in need, fostering technology solutions and finalizing outstanding rulemakings.
- Responding to Economic Risks: Ms. McWilliams highlighted regulatory and supervisory action to facilitate lending and provide needed flexibility for banks.
- Enhancing Resolution Readiness: She described expanded regular risk-monitoring and heightened monitoring for financial institutions exposed to industries most impacted by COVID-19.
- Supporting Communities in Need: Ms. McWilliams discussed the FDIC’s initiatives to preserve and promote minority depository institutions with particular attention to low- and moderate-income communities that continue to face difficulties in accessing banking and financial services.
- Fostering Technology Solutions and Encouraging Innovation: Ms. McWilliams noted trends that show individuals increasingly moving to digital banking; and advocated for regulators to foster technology developments by removing regulatory uncertainty for institutions that want to innovate.
- Finalizing Outstanding Rulemakings: She said the FDIC prioritized rulemakings “that will not disrupt or add unnecessary uncertainty to the market during time of great volatility.” These include finalizing two rules on federal interest rate authority and Section 19 of the Federal Deposit Insurance Act.