4/28/2017, 8:50 PM (Source: TeleTrader)
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Brainard: Fed concerned over fintech regulation

Providing financial technology, or fintech, companies with an access to consumer lending markets raises "interpretive and policy issues" for the United States Federal Reserve, Fed Governor Lael Brainard said on Friday.

Issues such as whether fintech companies would become members of the Fed or gain access to its accounts and services require a closer analysis by the US central bank, the governor said during her speech at Northwestern University in Evanston, Illinois. As a matter of fact, a new proposal by the Office of the Comptroller of the Currency (OCC) would provide technology companies with a direct access to consumers with loans, and for this reason policymakers and regulators have to decide whether to treat these companies as more traditional banks, she explained.

The OCC's proposal would provide fintech companies with "special purpose national bank charters," allowing them to potentially bypass the need for connecting to a bank for certain purposes in favor of becoming licensed as banks themselves.

Baha Breaking News (BBN) / IB