Risk management

Experts and industry leaders said banks are pumping investment into technology that can connect information silos.

New legislation from Rep. Sean Casten, D-Ill., would impose various requirements and consequences on large banks that don't have a chief risk officer. It follows the failure of Silicon Valley Bank, which left the job unfilled for eight months last year.

Data from recent bank failures suggests that prevailing assumptions about which deposits are the most volatile could be dangerously flawed.

The Federal Reserve has taken heat in recent years for its forays into climate stress testing, but the effects of climate change on the broader economy are getting harder to ignore.

If history is any guide, periods of disruption in the industry are followed by regulatory resets, which in turn force banks to compete for the talent needed to meet new compliance demands.

The banking crisis set in motion by the failure of three banks has the industry focusing once more on how to avoid the same scenario.

Like it or not, Big tech is going to become a player in financial services. It would be better to write rules now than to wait for a crisis.

Stakeholders have been focused on what went wrong in the months before Silicon Valley Bank was taken over by regulators. However, essential risk management was missed more than a year ago.

To strengthen the industry, large regional banks should be subjected to heightened supervision and the Federal Deposit Insurance Corp. should change how it assesses deposit insurance premiums.

The success of central bank digital currencies will be directly tied to their usability — by both individuals and businesses.