ICBA shares community bank digitalization priorities with OCC

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.