US bank regulators to tout deregulatory agenda to lawmakers

By Pete Schroeder

WASHINGTON, June 4 (Reuters) - The nation's apical slope regulators program to archer Congress connected Thursday that their efforts to trim ‌bank rules and oversight volition bolster economical enactment and innovation without ‌injecting undue hazard into the fiscal system.

The regulatory chiefs of the Federal Reserve, Federal Deposit Insurance ​Corporation and Office of the Comptroller of the Currency are acceptable to attest earlier the House Financial Services Committee, wherever they volition update lawmakers connected a broad effort to reconsider and soften galore slope rules enactment successful spot pursuing ‌the 2008 fiscal crisis.

"By tailoring ⁠requirements to existent risk, focusing supervision connected what genuinely matters, and integrating innovation into the regulatory framework, the Federal Reserve ⁠is creating conditions for banks to thrive portion maintaining the robust safeguards," said Fed Vice Chair for Supervision Michelle Bowman successful prepared remarks posted Wednesday.

Bowman and ​her chap ​regulators person been engaged re-examining tougher standards enactment ​in spot successful caller years, ‌arguing that overly punitive oversight has hindered banks' quality to enactment the economy. For example, Bowman said the Fed has recovered that examiners person reported galore slope deficiencies that were procedural oregon documentation gaps, not existent fiscal risk.

"For implicit a year, we person been reforming supervision to absorption connected worldly fiscal ‌risks alternatively than connected process-oriented, check-the-box requirements," ​said FDIC Chairman Travis Hill successful his prepared ​remarks.

At the aforesaid time, regulators ​plan to archer lawmakers they privation to promote innovation successful ‌the fiscal sector, some by banks ​through utilization of ​blockchain technologies and artificial intelligence, arsenic good arsenic nonbanks.

"Our occupation is to facilitate, not stymie, liable innovation," said Comptroller Jonathan Gould successful prepared testimony.

However, ​they besides warned caller ‌technologies airs risks to banks. Bowman noted that caller AI models ​have "dramatically accelerated" the recognition of vulnerabilities successful the banking system.

(Reporting by ​Pete Schroeder; Editing by Cynthia Osterman)