1
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at
The Office of Financial Research and
the University of Michigan’s Center on Finance, Law, and Policy
Fourth Annual Financial Stability Conference
Washington, D.C.
November 15, 2018
I would like to thank the Office of Financial Research and the
Michigan Center for Finance, Law, and Policy for the opportunity to
speak with you today.
This conference is an excellent opportunity to discuss trends
affecting financial services and how regulators should respond to those
trends.
Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
at
The Office of Financial Research and
the University of Michigan’s Center on Finance, Law, and Policy
Fourth Annual Financial Stability Conference
Washington, D.C.
November 15, 2018
I would like to thank the Office of Financial Research and the
Michigan Center for Finance, Law, and Policy for the opportunity to
speak with you today.
This conference is an excellent opportunity to discuss trends
affecting financial services and how regulators should respond to those
trends.
2
The Role of Banks in the Financial System
There is longstanding interest among policymakers and academics
in how best to organize the regulation of financial services. The
traditional U.S. regulatory model for financial services focuses on the
legal entity, whether it is a bank, a broker-dealer, or an insurance
company. Another school of thought is that since different legal entities
sometimes provide similar financial products, the focus of regulation
ought to be the products or activities themselves.
The FDIC – in its deposit insurance, supervision, and resolution
functions – is an example of the legal entity model of financial
regulation at work. As FDIC Chairman, my focus is to work within the
regulatory structure we have, and try to make it work as effectively and
transparently as possible.
The Role of Banks in the Financial System
There is longstanding interest among policymakers and academics
in how best to organize the regulation of financial services. The
traditional U.S. regulatory model for financial services focuses on the
legal entity, whether it is a bank, a broker-dealer, or an insurance
company. Another school of thought is that since different legal entities
sometimes provide similar financial products, the focus of regulation
ought to be the products or activities themselves.
The FDIC – in its deposit insurance, supervision, and resolution
functions – is an example of the legal entity model of financial
regulation at work. As FDIC Chairman, my focus is to work within the
regulatory structure we have, and try to make it work as effectively and
transparently as possible.