Washington, D.C. – Executive Vice President and Head of BITS Heather Hogsett issued the following statement today in response to the joint statement from the OCC, Federal Reserve and FDIC establishing updated procedures for handling sensitive bank data during the supervisory process:
The Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation’s statement today establishes a more secure and practical approach to handling sensitive data in the supervisory process. This helps to reconcile bank supervision with modern cybersecurity realities.
By making clear that banks can maintain control of highly sensitive data within their own secure systems—and by directing examiners to use alternative methods such as on-site review and appropriately redacted materials—the agencies have reduced avoidable risk exposure without compromising supervisory effectiveness.
In an environment of escalating cyber threats, limiting unnecessary movement of sensitive data is essential. Today’s announcement evolves supervisory processes to meet these risks.
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The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.
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