Federal Reserve Board issues new policy statement to promote banking innovation

The Federal Reserve Board on Wednesday withdrew its 2023 policy statement and issued a new policy statement to promote responsible innovation by regulated banks. Vice Chair for Supervision Michelle W. Bowman stated that the Federal Reserve Board is ensuring the safety of the banking industry by creating pathways for innovative products. The new policy statement creates avenues for both insured and uninsured state member banks regulated by the Federal Reserve Board to participate in certain innovative activities.