2017 Annual Report
I. Management’s Discussion and Analysis
The Year in Review
The FDIC has established a steering committee to monitor Financial Technology (Fintech) developments, and to better understand and assess the various dimensions within the program. The Committee is comprised of the Directors of the Division of Risk Management Supervision, Division of Depositor and Consumer Protection, Division of Insurance and Research, Division of Resolutions and Receiverships, and the Office of Complex Financial Institutions, as well as the General Counsel, Chief Risk Officer, and Chief Information Officer (CIO).
In 2017, the Fintech Steering Committee established the following objectives:
- Comprehend, assess, and monitor the current Fintech activities, risks, and trends;
- Evaluate the projected impact to the banking system, the deposit insurance system, effective regulatory oversight, economic inclusion, and consumer protection;
- Oversee internal working groups monitoring particular aspects of Fintech;
- Recommend follow-up actions, as appropriate, and monitor implementation; and
- Help formulate strategies to respond to opportunities and challenges presented by Fintech, and to ensure developments align with regulatory goals.
The Fintech Steering Committee has established internal interdivisional working groups to focus on various Fintech topics, including marketplace lending, mobile and virtual deposit services, digital payments, artificial intelligence and machine learning, distributed ledger technology and smart contracts, and digital tokens.
Center for Financial Research
The FDIC’s Center for Financial Research (CFR) encourages and supports innovative research on topics that are important to the FDIC’s roles as deposit insurer and bank supervisor. Research from CFR staff was accepted during the year for publication in leading banking, finance, and economics journals, and was presented at banking and finance seminars at major conferences, regulatory institutions, and universities.
In 2017, the CFR and the Journal of Financial Services Research jointly sponsored the 17th Annual Bank Research Conference. The conference organizers received more than 450 submissions for the 20 available presentation slots. CFR researchers also produced a number of new working papers in 2017. In addition, the CFR analyzed responses to the Small Business Lending Survey, and analysis and results were discussed at the Community Bank Advisory Committee meeting in late 2017. A report of the survey’s findings will be published in 2018.