ICBA said the OCC should adopt a modernized and responsive regulatory framework that enables responsible innovation while preserving the safety and soundness of the financial system.
Community Bank Priorities: In a letter responding to the OCC’s request for information on community bank digitalization, ICBA said the OCC should:
Leverage existing supervisory authority.
Facilitate industry-wide shared due diligence and standard-setting.
Reintroduce frequently asked questions and supervisory highlights for real-time guidance.
Support responsible use of artificial intelligence and machine learning.
Promote equitable oversight of third-party providers.
Modernize restrictions that currently inhibit community bank participation in innovation ecosystems such as venture capital funds.
Past Input: ICBA last fall urged federal banking regulators to periodically publish supervisory highlights on key examination findings related to bank-fintech partnerships.