The US Federal Deposit Insurance Corporation (FDIC) has required cryptocurrency-friendly Cross River Bank to “self-correct” and address shortcomings in its lending activities.
Agency made public an order of consent signed by the bank on March 8. The document said that Cross River Bank failed to establish and maintain “internal controls, information systems and prudent loan underwriting practices.”
“The FDIC has reviewed the issue and determined, and [Cross River Bank] neither admits nor denies engaging in unsafe or unsound banking practices related to compliance with applicable fair lending laws and regulations,” the order reads.
consent order (consent order) is a decision confirming that the addressee agrees not to engage in certain activities if he has previously engaged in them. The document is approved and issued by the court, but is not a strict court decision – it is classified as a settlement agreement.
Cross River Bank is a regional bank from New Jersey (USA) that cooperates with a number of cryptocurrency companies. According to the report FFIECas of the end of the first quarter of 2023, the volume of the organization’s deposits was estimated at $7.8 billion.
Previously, Circle became a client of Cross River Bank. The parties entered into an agreement after the collapse of Silicon Valley Bank, which previously served the co-issuer of the USD Coin (USDC) stablecoin.
In conversation with Bloomberg a representative of the credit institution noted that the order would not have a “significant impact” on the business. According to him, “many of the improvements” required in accordance with the document “have already been implemented or will be implemented in the coming months.”
Cross River Bank also emphasized that the order was issued as a result of a “standard review” of the lending business conducted in 2021. The document is not related to the activities of the bank focused on cryptocurrencies.
Recall that in April 2023, a representative of the banking regulator of the state of New York denied the assumption that Signature Bank failed due to its connection with the crypto industry.
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The US Federal Deposit Insurance Corporation (FDIC) has required cryptocurrency-friendly Cross River Bank to “self-correct” and address shortcomings in its lending activities.
Agency made public an order of consent signed by the bank on March 8. The document said that Cross River Bank failed to establish and maintain “internal controls, information systems and prudent loan underwriting practices.”
“The FDIC has reviewed the issue and determined, and [Cross River Bank] neither admits nor denies engaging in unsafe or unsound banking practices related to compliance with applicable fair lending laws and regulations,” the order reads.
consent order (consent order) is a decision confirming that the addressee agrees not to engage in certain activities if he has previously engaged in them. The document is approved and issued by the court, but is not a strict court decision – it is classified as a settlement agreement.
Cross River Bank is a regional bank from New Jersey (USA) that cooperates with a number of cryptocurrency companies. According to the report FFIECas of the end of the first quarter of 2023, the volume of the organization’s deposits was estimated at $7.8 billion.
Previously, Circle became a client of Cross River Bank. The parties entered into an agreement after the collapse of Silicon Valley Bank, which previously served the co-issuer of the USD Coin (USDC) stablecoin.
In conversation with Bloomberg a representative of the credit institution noted that the order would not have a “significant impact” on the business. According to him, “many of the improvements” required in accordance with the document “have already been implemented or will be implemented in the coming months.”
Cross River Bank also emphasized that the order was issued as a result of a “standard review” of the lending business conducted in 2021. The document is not related to the activities of the bank focused on cryptocurrencies.
Recall that in April 2023, a representative of the banking regulator of the state of New York denied the assumption that Signature Bank failed due to its connection with the crypto industry.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
