FEDERALhearing transcript

Understanding 'De-risking' in the Banking Industry

Original title: INTERNATIONAL AND DOMESTIC IMPLICATIONS OF DE-RISKING

January 1, 2018

financial regulation de-risking banking compliance international finance illicit finance

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The Frame

What this does

The hearing explores how federal regulatory compliance expectations influence which businesses and individuals can maintain access to banking services, potentially limiting financial inclusion for high-risk clients.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Financial Institutions

These entities face compliance expectations that influence their decisions to maintain or terminate client relationships.

Consumers and Businesses

These groups may lose access to financial products and services if their bank classifies them as high-risk.

What changed

Last recorded activity January 1, 2018.

What's next

Next step not available in the current record.

Summary

This hearing transcript documents a 2018 Congressional discussion on ',' a practice where banks terminate relationships with certain customers or regions to avoid regulatory compliance costs. The subcommittee examined how these decisions affect access to financial services both within the United States and internationally.

Key Facts

The hearing was held on June 26, 2018, by the Subcommittee on Financial Institutions and Consumer Credit.
The primary subject is 'de-risking,' defined as financial institutions terminating relationships with clients deemed high-risk to avoid regulatory compliance costs.
The subcommittee investigated the impact of post-financial crisis supervisory tactics on the availability of financial products.
The hearing addressed both domestic and international implications of banking relationship terminations.
The discussion included the tension between regulatory compliance and the ability to combat illicit financial activity.

Why It Matters

Frequently Asked Questions

What is 'de-risking' in the banking sector?

It is the practice where financial institutions end business relationships with certain customers or regions because the cost of complying with regulations for those 'high-risk' accounts is too high.

Why did the subcommittee hold this hearing?

To analyze how federal regulatory and examination tactics impact the availability of financial services for consumers and businesses globally.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Regulatory Impact on Banking Access

The hearing highlights a direct link between post-2008 financial crisis regulations and the reduction of banking services for specific client segments.

Subcommittee on Financial Institutions and Consumer Credit

Connected Entities

personSue E. Eckert“Adjunct Senior Fellow, Center for a New American Security”Map →

personMichael E. Clements“Director, Financial Markets and Community Investment, GAO”Map →

personJohn Lewis“SVP, United Nations Federal Credit Union”Map →

personBlaine Luetkemeyer“Chairman of the Subcommittee on Financial Institutions and Consumer Credit”Map →

personSally Yearwood“Executive Director, Caribbean-Central American Action”Map →

personGabrielle Haddad“COO, Sigma Ratings, Inc.”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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