The Federal Reserve Board divulged further information with regard to its program of looking into the goings-on in banks that are under its control. The matters are related to complicated technology-oriented associations with non-banks for rendering banking-based services to customers. Along with that is the issue of functionings that bring in crypto assets, distributed ledger, and blockchain technology.
The name of the exercise is the novel activities supervision program. The intention of the program is to nurture the advantages associated with financial innovation and simultaneously identify the risk factors revolving around the banking methods and stemming them. As per the plans, the program will be incorporated within the Federal Reserve’s current supervisory procedures. There will be the inclusion and contribution of program experts for carrying out this exercise.
The Federal Reserve Board took the liberty of passing on further information related to the procedures that need to be looked into by a state bank that is under the supervision of the Federal Reserve. This is prior to the bank involving itself in activities with regard to dollar tokens and stablecoins. The requirement of the bank is to impress upon the Federal Reserve supervisors that all safety measures are in place.
The information releases are part of a continuing effort to bring about further awareness for all concerned amidst the growing financial service requirements and their corresponding technologies. These bits of information add to the Board’s policy statement, which comes with transparency on matters of limiting selective functionings and creating a balance for banks having a federal supervisor.
Source: https://www.cryptonewsz.com/the-frb-divulges-further-information-on-its-program/