Deep Dive by Bank Tech Intel

Devon Jones

Each month we break down the most important regulatory developments affecting community banks. This podcast reviews new guidance, supervisory priorities, and policy changes from regulators including the FFIEC, OCC, Federal Reserve, FDIC, and other agencies. We explain what changed, why regulators are focusing on it, and what it means for bank executives, compliance officers, and risk leaders. If you are responsible for governance, compliance, technology oversight, or regulatory exams, this monthly update helps you stay informed and prepared.

  1. 5D AGO

    April 2026 Regulatory Intelligence Report

    We break down a month that reshaped financial regulation from several angles. First, we track three interagency capital proposals that could lower binding requirements for many banks. That shift matters because it changes how firms plan lending, liquidity, and balance sheet strategy. Throughout the episode, we return to capital reform as the thread that ties the month together. We start with the most consequential move in the report. The FDIC, Federal Reserve, and OCC advanced three connected proposals on March 19. Those proposals cover Basel III endgame changes, the standardized approach, and GSIB surcharge revisions. We explain what changed, who may feel it most, and why capital reform now looks more practical than punitive. Then we look at the details that shape real planning. The standardized approach would lower some risk weights, while larger firms would need to reflect AOCI in capital. We also cover the OCC estimate of a 6.9% aggregate reduction for its supervised banks. As a result, capital reform becomes more than a policy debate. It becomes an operating issue for banks across size tiers. Next, we turn to digital assets and market structure. The SEC and CFTC signed a landmark memorandum of understanding and backed a joint crypto interpretive release. We explain why that matters for product definitions, oversight, and enforcement. We also cover joint FAQs stating that eligible tokenized securities generally receive the same capital treatment as non tokenized equivalents. That guidance reduces uncertainty for institutions building digital asset workflows. At the same time, it doesn’t remove oversight or risk management expectations. Instead, it clarifies how agencies want firms to classify activities and plan controls. So while crypto drew attention, capital reform still shaped how banks may absorb those changes. The conversation then shifts to housing and consumer finance. We unpack the March 13 executive order on mortgage credit and the directives tied to QM, TRID, HMDA, appraisals, and FHLB programs. We also cover why agencies appear focused on reducing process burden while keeping core underwriting expectations in place. From there, we examine enforcement and operational risk. The DOJ secured a $68 million Colony Ridge settlement, while FinCEN pursued a major AML penalty. Meanwhile, CISA and state regulators raised alarms tied to Iran related cyber threats. Those developments show a clear pattern. Even as some rules ease, supervision, enforcement, and resilience still matter. In that context, capital reform sits alongside cyber, sanctions, and fair lending as part of a wider reset. By the end, we pull the themes together. This report describes a system moving away from highly prescriptive frameworks and toward a more tailored model. Yet it also shows that regulators still expect strong controls, documented reasoning, and faster response to risk. That’s why capital reform appears five different ways in the month’s agenda, from policy design to practical planning. We close with the takeaways compliance teams should watch through June 2026. To download the full report visit https://www.banktechintel.com/category/regulatory-updates

    24 min

  2. MAR 19

    A History of AI In Community Banking

    The episode explains that AI isn’t new to banking at all. Community banks have used versions of it for decades in credit scoring, fraud detection, and payment systems. What changed in 2022 was visibility. Generative AI made these tools obvious, conversational, and harder for bank leaders to ignore.A major theme is that community banks don’t usually build their own AI. They depend on large vendors like Jack Henry, Fiserv, and FIS, which creates serious third party and fourth party risk. Even when a bank rents the technology, it still carries the legal and reputational liability if the system fails, discriminates, or exposes customer data.The conversation also focuses on fraud. It covers deepfakes, voice cloning, and synthetic identity fraud, where criminals build fake but credible financial profiles over time. The episode argues that old rule based defenses can’t keep up, so banks need AI systems that analyze context, behavior, and patterns in real time.At the same time, the episode shows how AI can improve growth and service. It highlights examples where AI assistants handled customer calls more effectively, helped process loan applications, reduced manual document work, and gave bankers more time for direct client relationships. The core idea is that AI should act as a relationship multiplier, not a replacement for human bankers.The final takeaway is strategic. Banks that adopt AI with strong governance, clean data, and good execution may gain a competitive edge, while slower institutions risk falling behind or being absorbed. The episode ends by pointing to federated learning as a possible way for smaller banks to improve AI models without sharing private customer data.Visit the full article to get free resources that’ll help you make smarter moves on your AI journey. We’ve pulled together practical tools, guidance, and next steps so you can turn these ideas into action.https://www.banktechintel.com/a-history-of-ai-in-community-banking

    23 min

  3. MAR 6

    March 2026 Regulatory Update: Wells Fargo Enforcement Ends, CRA Reconsideration, and Digital Asset Integration

    In this episode we break down the major financial regulatory developments from late February through early March 2026. The period featured one of the most significant enforcement resolutions in modern U.S. banking supervision, continued regulatory recalibration across agencies, and ongoing efforts to integrate digital assets and modern payment infrastructure into the financial system. We begin with a major milestone in bank supervision. The Federal Reserve terminated the long standing enforcement action against Wells Fargo that had been in place since 2018. Regulators determined that the bank had completed required remediation measures and satisfied the compliance commitments imposed after its governance and risk management failures. The decision closes one of the most closely watched enforcement actions in the history of U.S. banking regulation. The episode then turns to broader supervisory developments across federal banking agencies. Regulators continue reviewing existing rules under the Economic Growth and Regulatory Paperwork Reduction Act process, an initiative aimed at identifying outdated or unnecessarily burdensome banking regulations. At the same time, agencies are reassessing the Community Reinvestment Act framework, including the potential rescission of the 2023 modernization rule and a return to the longstanding 1995 regulatory structure. We also examine the financial condition of the banking sector. Recent FDIC data shows return on assets across insured institutions at approximately 1.24 percent, reflecting strong but moderating profitability as banks face margin compression from higher funding costs and evolving interest rate conditions. Another major theme involves the continued integration of digital assets and modern payment infrastructure into the regulatory framework. Federal regulators are developing supervisory structures for stablecoin activity, tokenized financial instruments, and emerging digital payment systems, while also monitoring financial stability implications tied to digital asset markets. Consumer financial protection activity also remained active during the period. The consumer protection regulator requested public comment on data collection requirements affecting mortgage lenders and other financial institutions as part of broader efforts to reassess regulatory reporting burdens. The episode also covers developments across financial markets regulation, financial crime enforcement, and cybersecurity oversight. Securities regulators continue focusing on investment adviser compliance, market structure reform, and digital asset market oversight. Meanwhile, financial intelligence authorities remain focused on beneficial ownership reporting, anti money laundering modernization, and cross border financial crime coordination. Cybersecurity continues to be treated as a systemic financial stability risk. Federal cyber agencies issued warnings about ransomware campaigns, identity infrastructure vulnerabilities, and supply chain compromises that could affect financial institutions and payment networks. Taken together, the developments from this period highlight a regulatory landscape continuing to evolve. Agencies are recalibrating supervisory frameworks, resolving long running enforcement actions, and building new oversight structures for digital finance and modern payment infrastructure while maintaining strong focus on financial stability and cyber resilience.

    20 min

  4. MAR 6

    February 2026 Regulatory Update: Stablecoin Rulemaking, Stress Test Changes, and End of Reputation Risk

    In this episode we break down the key financial regulatory developments from February 2026. The month was defined by major progress toward a federal framework for stablecoins, continued reform of bank supervision standards, and a transition period in stress testing policy. We begin with one of the most consequential proposals from the Federal Reserve. The central bank issued a proposed rule that would formally eliminate reputation risk as a supervisory factor in bank examinations. The proposal would prohibit regulators from pressuring financial institutions to deny services based on lawful activities, political views, or religious affiliations. Instead, examinations would focus on measurable financial and operational risks such as capital strength, liquidity, and governance. The conversation then turns to the evolving stress testing framework for large banks. Regulators released the 2026 supervisory stress test scenarios and confirmed that current stress capital buffer requirements will remain in place through 2027 while new supervisory models are reviewed and updated. The pause signals a transitional phase in the Comprehensive Capital Analysis and Review program as regulators seek greater transparency and consistency in stress testing methodology. Another major theme during the month involved digital asset regulation. Federal banking agencies advanced several rulemaking initiatives to build a regulatory structure for stablecoin issuance by banks. The FDIC extended the comment period on its proposed rule governing approval procedures for banks issuing payment stablecoins through subsidiaries, while the OCC issued a separate proposal implementing provisions of the GENIUS Act for national banks and federal savings associations. Together, these initiatives represent one of the most significant steps toward integrating stablecoin activity into the regulated banking system. We also examine developments affecting bank chartering and deposit insurance. The FDIC approved deposit insurance for a new industrial bank sponsored by a major financial services firm, signaling continued interest in alternative banking charters. Regulatory agencies also continued efforts to improve transparency and oversight processes. The OCC introduced proposed changes to its supervisory appeals framework, giving banks additional clarity on how they can challenge examination findings and supervisory determinations. Beyond rulemaking and supervision, regulators released updated financial performance data showing that insured institutions maintained solid profitability levels, though returns moderated slightly compared with earlier periods. Taken together, February 2026 highlights a financial regulatory environment undergoing structural modernization. Supervisory frameworks are shifting toward objective risk metrics, stress testing policies are being redesigned, and regulators are building the first comprehensive rulebooks governing bank participation in the stablecoin and digital asset ecosystem.

    20 min

  5. MAR 6

    January 2026 Regulatory Update: Supervisory Appeals Office, Stablecoin Policy, and Sanctions Expansion

    In this episode we break down the major financial regulatory developments that opened 2026. The month brought continued supervisory reform across banking agencies, new steps toward integrating digital asset infrastructure into the financial system, and expanded sanctions enforcement targeting geopolitical networks. We begin with a structural change at the Federal Deposit Insurance Corporation. Regulators finalized the creation of a new Office of Supervisory Appeals designed to handle disputes involving supervisory determinations. The office operates independently from supervisory divisions and is intended to provide banks with a more transparent and consistent process for challenging examination findings or enforcement decisions. The episode then turns to broader supervisory policy trends emerging across federal banking regulators. Officials signaled continued movement toward risk focused supervision centered on measurable financial risk categories such as capital adequacy, liquidity management, and credit exposures. This approach continues the ongoing shift away from supervisory frameworks that relied on reputational risk as a factor in examinations. We also examine developments affecting digital assets and emerging payment infrastructure. Regulators continued exploring frameworks that would allow banks to apply for approval to issue payment stablecoins, reflecting increasing attention toward digital settlement systems and the integration of tokenized financial instruments into traditional banking activity. Operational adjustments within the Federal Reserve also surfaced during the month. The central bank resumed accepting penny deposits at coin distribution facilities after the U.S. Mint ended production of new pennies, an operational step designed to maintain circulation of existing coin inventories. Regulatory activity at the Office of the Comptroller of the Currency also continued with consultations on potential changes to community bank chartering rules, adjustments to preemption determinations involving escrow interest requirements, and revisions to heightened supervisory standards thresholds. Beyond banking supervision, the episode reviews developments in financial intelligence and sanctions enforcement. Treasury officials issued new sanctions targeting networks tied to Houthi financing and smuggling operations, including designations of individuals, entities, and maritime assets linked to weapons procurement and energy trade activities. We also discuss financial crime enforcement coordination. FinCEN expanded international cooperation among financial intelligence units focused on disrupting transnational organized crime financing while increasing engagement with whistleblowers reporting violations of anti money laundering and sanctions laws. Cybersecurity remained another key theme throughout the month. Federal cyber authorities added several newly exploited vulnerabilities to the Known Exploited Vulnerabilities catalog, prompting financial institutions to update patching and vulnerability management processes across critical infrastructure systems. Taken together, January 2026 reflected a regulatory environment continuing to evolve. Supervisory reform, digital asset policy development, financial crime enforcement, and cybersecurity monitoring remain central priorities shaping the financial regulatory landscape at the start of the year.

    20 min

  6. MAR 6

    December 2025 Regulatory Update: Stablecoin Framework, Leveraged Lending Rollback, and Crypto Flexibility

    In this episode we wrap up the major financial regulatory developments that closed out 2025. December brought continued regulatory recalibration across banking agencies, new frameworks for digital asset activity, and ongoing efforts to modernize supervision while reducing regulatory burden. We begin with several important actions from the Federal Deposit Insurance Corporation. Regulators finalized changes to how the special assessment tied to the 2023 bank failures will be collected, ensuring the Deposit Insurance Fund is replenished appropriately. The agency also finalized a rule updating procedures for bank branch establishment and relocation, part of a broader effort to modernize supervisory rules. In addition, regulators proposed a new framework outlining how FDIC supervised institutions could apply to issue payment stablecoins under the developing regulatory structure for digital asset payments. The episode then turns to significant supervisory changes involving leveraged lending. Federal banking regulators rescinded the long standing 2013 leveraged lending guidance, signaling a move away from prescriptive leverage thresholds and toward principles based supervision grounded in general safety and soundness standards. We also examine developments at the Federal Reserve. The central bank rescinded a restrictive policy statement that had previously limited certain activities of state member banks, opening the door for broader participation in digital asset related services so long as institutions meet traditional risk management expectations. At the same time, the Federal Reserve launched a review of its check processing services as declining paper check usage continues to reshape the payments landscape. Consumer financial regulation remained dominated by uncertainty surrounding the consumer protection regulator. Congressional action reduced the agency’s funding cap, forcing operational restructuring and raising questions about the agency’s long term capacity to maintain its previous level of supervisory and enforcement activity. The episode also explores developments in financial crime enforcement. FinCEN released a major analysis of ransomware related suspicious activity reports, highlighting the growing role of cryptocurrency laundering mechanisms and increasingly sophisticated cybercrime networks. At the same time, sanctions enforcement continued with a multimillion dollar settlement involving violations of Russia related sanctions by a private equity firm. Beyond banking supervision and financial crime, regulators continued examining structural risks across financial markets and emerging technologies. Financial stability officials emphasized resilience, innovation, and oversight of technologies such as artificial intelligence and digital assets. Taken together, December 2025 highlighted a regulatory environment continuing to evolve. Agencies pursued reduced regulatory burden, expanded flexibility for digital asset activity, and renewed focus on financial system resilience as the industry enters a new phase of financial innovation and supervisory reform.

    20 min

  7. MAR 6

    November 2025 Regulatory Update: Capital Rule Reform, Fed Supervision Overhaul, and CFPB Crisis

    In this episode we break down the major financial regulatory developments from November 2025. The month marked a major shift in bank capital regulation, a sweeping change in the Federal Reserve’s supervisory philosophy, and an unprecedented institutional crisis for the Consumer Financial Protection Bureau. We begin with one of the most significant regulatory changes of the year. Federal banking regulators finalized reforms to the Enhanced Supplementary Leverage Ratio, a key capital rule for large banks. The changes reduce capital requirements associated with low risk assets such as U.S. Treasury securities. Regulators said the reform was designed to improve liquidity and participation in Treasury markets while keeping overall bank capital levels strong. The conversation then turns to a major transformation in Federal Reserve supervision. New supervisory principles instruct examiners to focus primarily on material financial risks such as credit quality, funding stability, and capital adequacy. The revised approach reduces emphasis on documentation, procedural compliance, and reputational risk factors. Regulators say the change will streamline supervision and allow banks to address issues internally before they escalate into formal enforcement actions. We also examine the financial condition of the banking system. New industry data released during the month showed continued strong profitability across FDIC insured institutions, with return on assets remaining solid and capital levels broadly stable across the sector. One of the most dramatic developments came from the consumer protection regulator. A determination that the agency’s funding mechanism was unlawful triggered a major institutional crisis. Without access to new funding transfers, the agency faces the prospect of exhausting its resources in early 2026. The development has forced sharp operational changes including proposed workforce reductions, suspension of several regulatory initiatives, and a significant reduction in supervisory activity. At the same time, the agency proposed major changes to fair lending enforcement. The proposals would eliminate disparate impact liability under the Equal Credit Opportunity Act and narrow the scope of certain credit program provisions. If implemented, the changes would represent one of the most significant shifts in consumer lending enforcement policy in decades. Beyond banking supervision and consumer protection, the episode also covers developments across financial markets regulation, sanctions enforcement, and financial crime monitoring. Regulators continued targeting insider trading, accounting fraud, and sanctions evasion while expanding beneficial ownership reporting and anti money laundering oversight. Taken together, November 2025 reflected a structural turning point in U.S. financial regulation. Capital rules were recalibrated, supervision shifted toward core financial risk, and the future of consumer financial protection entered a period of significant uncertainty.

    21 min

  8. MAR 6

    October 2025 Regulatory Update: End of Reputational Risk Supervision, Stress Test Reform, and Open Banking Blocked

    In this episode we unpack the biggest financial regulatory developments from October 2025. The month delivered one of the most significant shifts in banking supervision in years, major changes to the Federal Reserve’s stress testing program, and a court decision that halted the implementation of the consumer data sharing rule. We begin with a major proposed rule from federal banking regulators that would formally remove reputational risk from bank supervision. Under the proposal, regulators would no longer criticize institutions or pressure them to terminate lawful customer relationships based on political, social, or cultural considerations. Supervisory actions would instead focus strictly on measurable financial risks such as capital strength, liquidity, credit exposures, and operational stability. The conversation then turns to transparency reforms in the Federal Reserve’s stress testing framework. Regulators announced plans to disclose supervisory models and scenarios used in the annual stress tests while reducing documentation requirements imposed on banks. The changes are designed to increase transparency and predictability in capital regulation while modestly reducing regulatory capital requirements. Another major development involved the release of updated resolution plans for large banking organizations. The Federal Reserve and FDIC published public sections of living wills submitted by major U.S. and foreign banks. These documents outline how institutions could be resolved in a crisis without taxpayer support and remain a central pillar of post financial crisis supervision. The episode also explores structural changes within the Federal Reserve’s supervisory operations. The central bank announced plans to reduce its bank supervision workforce and shift more strongly toward a risk focused supervisory model centered on core financial stability metrics rather than procedural compliance reviews. Consumer financial regulation also faced a major legal development. A federal court issued an injunction blocking enforcement of the consumer financial data sharing rule commonly described as the open banking rule. The decision concluded that the rule likely exceeded the agency’s statutory authority and imposed significant compliance burdens, forcing regulators to reconsider the policy. Beyond banking supervision, we review developments across financial markets, sanctions enforcement, and cybersecurity oversight. Market regulators continued pursuing cases involving investment adviser misconduct and digital asset markets, while Treasury authorities expanded sanctions targeting global financial networks linked to geopolitical conflicts. Cybersecurity threats also remained a persistent concern. Federal cyber agencies warned about ransomware campaigns, supply chain compromises, and phishing operations targeting financial institutions and payment infrastructure. Taken together, October 2025 marked a turning point in financial regulation. Supervisory frameworks moved toward risk based oversight, transparency increased in capital stress testing, and court rulings began reshaping the boundaries of financial regulatory authority.

    21 min
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About

Each month we break down the most important regulatory developments affecting community banks. This podcast reviews new guidance, supervisory priorities, and policy changes from regulators including the FFIEC, OCC, Federal Reserve, FDIC, and other agencies. We explain what changed, why regulators are focusing on it, and what it means for bank executives, compliance officers, and risk leaders. If you are responsible for governance, compliance, technology oversight, or regulatory exams, this monthly update helps you stay informed and prepared.

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