Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Thursday, June 23, 2016

FSOC Highlights Risks of Blockchain, Marketplace Lending

In its annual report and during its public session, the Financial Stability Oversight Council trained scrutiny on the potential risks posed by the growing use of new financial products and delivery mechanisms, including marketplace lending and distributed ledger or blockchain technology.

The council said:
[R]isks embedded in new products and practices may be difficult to foresee. Financial regulators will need to continue to be vigilant in monitoring new and rapidly growing financial products and business practices, even if those products and practices are relatively nascent and may not constitute a current risk to financial stability.

FSOC’s comments on blockchain technology represent the first time the body overseeing U.S. financial stability has raised the concern. While distributed ledgers are viewed by many in the financial industry as a secure way to reduce third-party transaction costs and risk exposures, FSOC warned that “operational vulnerabilities associated with such systems may not become apparent until they are deployed at scale” and that some systems may be vulnerable to fraud executed through collusion among a significant fraction of participants in the system.

As it has in the past, the FSOC report also highlighted risks associated with capital and liquidity, wholesale funding, housing finance and interest rate shifts, noting that regulators are seeking to address these through existing supervision or, in the case of housing finance, waiting for action from Congress on the future of the government-sponsored enterprises.

Read the report.


Shelly Degree said...

Great article! I am so grateful to the author! This study is exactly what I need for my case analysis because I am learning digital economy effects to the global market. I will definitely order writing MBA coursework from professionals to share the result with you!

Alicia said...

Very informative article! All we know that studying it's a very time-consuming and complex work and sometimes we need help(speedypaper review). With it I feel much more confident in my abilities. Even in the most difficult situations they will find a solution!

Post a Comment

Please read our comment policy before making a comment.