The Clearing House's Annual Conference is part of The Clearing House's mission to deepen the understanding of the shifting regulatory environment and the rapidly changing payments landscape.
Technology, changing consumer demands, regulation and non-bank competition are all forces changing the banking landscape, affecting how banks are structured, their technology investments, physical presence, ROE, and more. This panel convenes leading experts with deep knowledge of the industry, but who are affiliated with institutions other than banks, for an outside perspective on how banks are being re-shaped in response to these trends and what these changes mean for bank customers, markets, shareholders, and perhaps the financial system more generally. Panelists will also share their perspective on potential futures for the commercial banking landscape.
Over eight years after the financial crisis and six years after the passage of Dodd-Frank, both the benefits and costs of the largest overhaul of the financial system in history are becoming clearer. This panel will provide perspective on regulatory impacts in terms of enhanced systemic stability, but also where regulation may be having unintended effects in terms of impeding lending, shrinking market liquidity, and otherwise diminishing the critical role of banks and other regulated financial entities in promoting economic growth.
The waiting is over - Real Time Payments have arrived. The biggest advance in US Payments in more than 40 years promises to revolutionize the way we pay and more. To realize this promise, financial institutions, technology companies and end users must use the new payment system as a platform for innovation.
This panel focus on changes that could be made to the U.S. supervisory stress tests that would make them much more integrated with the point-in-time framework for capital requirements, such as using the results of stress tests to calibrate a bank-specific capital buffer. It will also discuss the trade-offs of having banks’ own models playing a key role in determining their post-stress regulatory capital ratios and having Fed’s own models used only to ensure the consistency of stress test results across banks.
The next generation of banking is emerging through the advancements in Commercial and Personal digital access, Big data, Artificial Intelligence, Application Programming Interfaces and Real-Time Payments. Using these technologies to enable your customer to do business with you when they want and how they want will become the status quo.
More stringent regulatory standards are reshaping asset liability management practices from both a short- and long-term perspective. Panelists, including top regulators from the U.S. banking agencies, treasurers of large banks and bank advisors will discuss the impact of these requirements on markets, market participants and the overall economy.
This panel will discuss recent payments-related UDAAP enforcement actions and key takeaways for the payments industry. It will also cover expectations for the future, including the impact the political environment may have on CFPB enforcement, as well as UDAAP considerations relating to faster payments and other new payments technologies.
Recent trends towards ex ante ring-fencing of banking operations along geographic lines are fragmenting the global banking system in ways that could have profound consequences. Official motivations range from improving resolvability of global banking organizations to enhancing supervision, but populist and protectionist undercurrents may be the true cause. Evidence is abundant: U.S. intermediate holding company (IHC) requirements for non-U.S. banks adopted in 2015, similar EU IHC requirements proposed in 2016 for large non-EU banks, efforts to force relocation of derivatives clearing from deep global liquidity pools into shallow local pools. Listen to a panel of experts defend the policies and discuss the practical implications for banks, customers and markets.
Our economic and financial system operates by letting market forces, rather than the government, dictate the economic decisions of businesses and households whenever possible. Ideally, government intervention is only called for when there is a market failure. In banking, regulation and supervision is necessitated by the short-circuiting of market prices caused by deposit insurance and by the externalities associated with bank distress or failure and the associated belief that some banks are too big to fail. However, ongoing work to ensure that any bank can fail in an orderly manner without outsized externalities as well as new requirements that banks fund themselves in part with longer-term debt that can be converted into equity if necessary have opened up new possibilities for making use of market forces rather than government dictates to allocate capital and manage the liquidity transformation inherent in banking. The panel will focus on how, in light of these changes as well as new academic thinking, regulation and supervision could be revised to entail a lighter touch from government and a greater role for market discipline.
With the aggressive investment in Financial Technology (FinTech) and innovation that is happening in the financial services space, customers have more options than ever. That isn't always a good thing especially if it creates more fragmentation. As Financial institutions are looking at evolving their services to meet their customers growing demands they are looking at FinTech's less as competitors and more toward partnerships and potential acquisitions of new financial services technologies firms.
The litigations and enforcement environment continues to evolve for banks. Responding to government investigations and enforcement actions is becoming steadily more demanding. During this panel, regulators and senior representatives from banks will provide insights into the hallmarks of a good internal investigation, current enforcement priorities and initiatives, ongoing challenges as well as issues relating to institutional vs. individual accountability, interagency coordination of enforcement actions, the appropriate role of compliance monitors, and what some observers increasingly refer to as "regulation by enforcement."
Artificial Intelligence has been around for a while however advances in computing and data have made it more useful. We will discuss the applications that will help to transform the banking and payments universe from Credit Underwriting, Customer Monitoring, Fraud and Compliance and Customer Servicing.
Since the crisis, U.S. and global bank regulators have raised expectations for bank boards of directors, and have proposed a broad-range of new responsibilities. As a consequence, unprecedented demands are being placed on the time, ability and expertise of the board and individual directors. How can a board, as a practical matter, competently satisfy this burgeoning set of regulatory requirements while still fulfilling all of the other fiduciary and strategic obligations expected of modern directors? This panel, including directors and leading experts in bank corporate governance, will discuss how the new administration and agency leadership can contribute to sound board governance as well as other cutting-edge issues and challenges facing boards of directors including the role of the board in a rapidly evolving digital environment.
The panel will focus on the changes in regulatory policy under the current Administration, including with respect to supervisory ratings (such as the Federal Reserve’s proposed new rating system for Large Financial Institutions), the Community Reinvestment Act, BSA/AML, commercial real estate and other topics. Among other developments in this area, panelists will discuss the relationship between supervision and a bank’s ability to expand via mergers and acquisitions and other means. The panel also will explore practical approaches to effectively and efficiently navigate the regulatory approval process. Specific topics to be discussed include: lessons from recent transactions, ways to expedite the approval process, and opportunities to seek informal guidance.