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News
SDBA UpdatesSDBA EventsOnline EducationCompliance AllianceABA Banking Journal: Bowman: Banking agencies need to take regulatory review 'seriously'October 30, 2025
Banking agencies are required by Congress to review their regulations every 10 years but their past reviews have been “underwhelming,” resulting in no reduction in regulatory burden, Federal Reserve Vice Chair for Supervision Michelle Bowman said today. The Economic Growth and Regulatory Paperwork Reduction Act, or EGRPRA, requires the Federal Financial Institutions Examination Council and bank regulators to review their regulations every decade to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions. In remarks at a Kansas City Fed conference, Bowman criticized the past two EGRPRA reviews for failing to reduce regulatory burden, calling it “an unacceptable outcome.” The agencies are currently engaged in a new round of EGRPRA review. “We must take this process seriously, and through it, actually identify opportunities for change that will have lasting impact,” Bowman said. “We are implementing the current process to provide meaningful engagement for stakeholders to identify regulatory changes that result in less complexity, lower compliance costs and increased efficiency while also maintaining safety and soundness.” Bowman said many of the Fed’s regulations have not been reviewed or updated in 20 years. “Given the dynamic nature of the banking system and how the economy and banking industry have evolved over that period, we should update and simplify many of the [Fed] board’s regulations, including thresholds for applicability and benchmarks. These thresholds should also be indexed to account for economic growth and inflation,” she said. As part of the EGRPRA process, the American Bankers Association recently submitted a list of recommendations to reduce the regulatory burden on banks, including asking that the Fed rescind its rule implementing Regulation II, which sets standards for debit card interchange fees. Back to TopABA Banking Journal: Deloitte: 2026 could be defining year for banksNovember 3, 2025
In its recently released 2026 banking and capital markets outlook, the firm noted the range of economic scenarios for the year “remains wide” with the effects of tariffs on inflation and economic growth still unclear. While most banks will enter the year on strong footing, “they may face some headwinds in net interest income in 2026, driven largely by lower rates and a slowing economy.” The passage of the Genius Act earlier this year created a regulatory framework for payment stablecoins, which could lead to deposit disruption but also provide new business opportunities for banks, according to Deloitte. “2026 could be a pivotal year to develop strategies and address the risks related to stablecoins. In response, banks will likely need to bolster their infrastructure and capabilities as alternatives to deposits and payment rails emerge.” As for AI, many banks have “only achieved sporadic tactical wins rather than true strategic transformation” in adopting the technology. Among other things, the report recommended that banks adopt a clear vision with concrete outcomes for AI adoption, and that they establish clear ownership and governance to see that vision made reality. Back to topABA Banking Journal: ABA, associations share recommendations for implementing Genius ActCALL TO ACTION: Ask the Senate to implement key recommendations in digital asset market structure legislationNovember 5, 2025
As the Treasury Department crafts regulations to implement the Genius Act, it should seek to preserve the benefits of payment stablecoins without causing unnecessary risks for customers, credit availability and financial stability, the American Bankers Association and four associations said in a joint letter. The Treasury Department in September issued an advance notice of proposed rulemaking seeking public input on how it should implement the Genius Act, which creates a regulatory framework for payment stablecoins. In their letter, the associations made several recommendations for how that can be done without negatively affecting the broader financial system:
In related news, the Conference of State Bank Supervisors released two separate letters yesterday calling for “strict compliance with GENIUS Act limitations on financial activities by payment stablecoin issuers,” including the law’s prohibition on paying interest or yield on payment stableoins. SDBA CALL TO ACTION:From SDBA President & CEO, Karl Adam Dear engaged members of the SDBA, Karl Back to TopCISA News: Microsoft Azure Goes DownIn a rough day for the cloud-dependent internet, Microsoft’s Azure cloud computing platform suffered a major, global outage yesterday (October 29), taking down a long list of services from Xbox Live and Microsoft 365 to critical systems for airlines and banks. Microsoft confirmed that the disruption began around 16:00 UTC (12:00 p.m. ET) on October 29. The issue was traced to Azure Front Door (AFD), a key content delivery and traffic management system that helps deliver apps and data efficiently to users worldwide. According to Microsoft’s official status page, the company “confirmed that an inadvertent configuration change was the trigger event for this issue.” The misconfiguration caused widespread latencies, timeouts, and connection errors across multiple regions and services. Recovery in progress The company noted that the recovery process was “gradual by design,” explaining that this approach helps prevent overload and ensures stability as dependent services come back online. While access to the Azure management portal was briefly impacted, Microsoft said it has redirected portal traffic away from the faulty AFD infrastructure, allowing most users to sign in again. However, a few features may still load slowly. Microsoft estimates full recovery by 00:40 UTC (8:40 p.m. ET) but cautions that some customers may still experience intermittent issues until all systems are stable. Microsoft and 365 services impacted The Microsoft 365 status account on X confirmed “downstream impact related to the ongoing Azure outage,” affecting access to Outlook, Teams, and other productivity tools. Gaming platforms were also hit. Xbox Live and Minecraft users reported failed logins and multiplayer connection issues throughout the afternoon. The Azure outage didn’t stop at Microsoft’s borders. Several major companies that rely on its cloud platform also suffered downtime. Alaska Airlines said it was “experiencing a disruption to key systems, including our websites,” due to the Azure issue, while Hawaiian Airlines and Heathrow Airport reported similar problems. In the UK, websites for NatWest and M&S temporarily went offline. Retailers and coffee chains weren’t spared either, as users reported issues accessing Starbucks, Costco, and Kroger websites. Back to Top |
Economic uncertainty could test U.S. banks’ revenues and profitability in 2026, and many institutions will likely need to make major decisions on stablecoins and artificial intelligence, according to a new report by the auditing and consulting firm Deloitte.
