Fed Supervision, Regulation in Covid
On Apr. 30, Fed released Apr. 2021 supervision and regulation report.
- Fed semiannual report to inform on efforts to promote safety, soundness in banking.
- In conjunction with semiannual testimony to Congress, by Vice Chair for Supervision.
- Included data on banking conditions, board’s supervisory, regulatory policies, actions.
- Issue focused on regulatory, supervisory response to Covid economic, financial stress.
- Report Structure
- 3 main sections on banking system conditions, regulatory, supervisory developments.
- Overview of trends, market indicators, policy work, pending rules, themes, priorities.
- Described measures of health of system and areas of focus given ongoing uncertainty.
- Report Highlights
- Banking system demonstrated financial, operational resilience throughout COVID-19.
- Financial institution's capital and liquidity positions remained robust, enabled recovery.
- Banks took actions, like technological investment, to maintain operational resilience.
- Reported that profitability of banks has mostly rebounded to pre-COVID-event levels.
- Key market indicators reflected improved conditions, banks played vital role in PPP.
- However, lending activity slowed after May 2020 peak, little growth beyond PPP loans.
- Decline in net interest margin accelerated in 2020; delinquency rate slightly increased.
- Loan modification activity activity continued, but declined after peak in Q2, Q3 2020.
||B/D; Bank; Ins; SIFI
||PR, Rp, 4/30/2021; COVID-19;
||Compliance; C-Suite; Exams; Financial; Reporting; Risk; Treasury
||United States of America
||Banking; Insurance; Loan; Securities
|Reg. Last Update
Last substantive update on 05/03/2021