Senator calls for restoration of bank examiner powers on AI and cybersecurity risks

A US senator has urged the Federal Reserve, OCC and FDIC to restore powers for bank examiners, according to Banking Dive. The senator said that policies restricting when examiners can issue warnings and take enforcement actions make banks more vulnerable to rising AI and cybersecurity threats.

This call draws attention to regulatory gaps in digital risk oversight. If agencies act, banks could face more frequent interventions and stricter compliance checks. Senior executives should monitor for any policy changes that could alter supervisory expectations for technology and cyber risk controls.