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FDIC's Annual Risk Review Includes Crypto Risks for First Time
August 17, 2023The Federal Deposit Insurance Corporation (“FDIC”) published its annual Risk Review this past Monday, providing an overview of banking conditions for 2022 through early 2023. The FDIC started providing Risk Reviews to the marketplace in 2019, at which point it focused upon key risks in two categories – credit risk and market risk. However, in the 2022 Risk Review, the FDIC also covered operational risks as well as credit risks and market risks, with a particular focus on cyber threats and illicit activities, and addressed climate-related financial risk as well. This year’s Risk Review adds a fifth category of risks presenting challenges to the banking system: crypto-asset-related markets and activities, which the FDIC included largely due to the “failure of three large banking institutions in March and May” of this year.
