The Federal Reserve Board announced on Wednesday that it has withdrawn its 2023 policy statement and introduced a new policy statement related to the treatment of certain Board-supervised banks. The new guidance is intended to facilitate responsible innovation within the banking sector.
Vice Chair for Supervision Michelle W. Bowman stated, “New technologies offer efficiencies to banks and improved products and services to bank customers. By creating a pathway for responsible, innovative products and services, the Board is helping ensure that the banking sector remains safe and sound while also modern, efficient, and effective.”
The 2023 policy statement had previously limited activities of Board-supervised state member banks to those allowed for banks overseen by other federal regulators. It also addressed how these rules would apply to some innovative financial products and services. Since then, changes in the financial system and increased understanding of innovative offerings led the Board to conclude that the prior statement was no longer suitable, prompting its withdrawal.
The newly issued policy statement now establishes a framework for both insured and uninsured state member banks under Federal Reserve supervision to participate in specific innovative activities.
Additional information can be found in the Federal Register notice: Policy Statement on Section 9(13) of the Federal Reserve Act (PDF), as well as in the Board Memo (PDF).
