PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, July 23, 2020
By FedACTion Task Force
PH Client Alerts
U.S. House of Representatives
Committee on Small Business
Review of SBA Technology Systems and Modernization Efforts
July 22, 2020
The House Small Business Subcommittee on Investigations, Oversight, and Regulations held a hybrid hearing focused on long-standing technological issues at the Small Business Administration (SBA). Although the SBA has made strides in improving its IT over the past decade, the influx of activity from small business owners attempting to access relief during the COVID-19 crisis (e.g., PPP, EIDL) has further exposed flaws in SBA technology that have been present for years. Lenders, borrowers, applicants, and third-party vendors have reported technological shortcomings that have raised concerns about data privacy, capacity and access issues within the E-Tran loan processing system, and the potential for fraud in relief programs. During the hearing, members discussed the technological issues SBA is facing and its plan to improve its IT systems with SBA Deputy Chief Information Officer, Guy Cavallo.
Bank of England Prudential Regulation Authority
Climbing Mountains Safely - Speech by Sarah Breeden
July 22, 2020
Sarah Breeden, Executive Director, UK Deposit Takers Supervision at the Prudential Regulation Authority (PRA), discussed a new guide for banks that is designed to help new and growing banks move from initial authorization to becoming an established player in the banking market. The guide builds on the steps the PRA has already taken to lower barriers to entry for new firms, which over the past few years have helped support change in the UK banking system.