As the COVID-19 pandemic continues to wreak havoc on economies around the world, one industry that has been hit particularly hard is banking. With businesses shuttered and individuals struggling to make ends meet, banks have had to navigate a tumultuous landscape of loan defaults and financial uncertainty. Now, with President-elect Biden set to take office in just a matter of weeks, many are wondering how his administration plans to tackle these unprecedented challenges facing the banking industry. In this blog post, we’ll explore Biden’s proposed strategies for navigating turmoil in the banking sector amidst ongoing COVID-19 restrictions and economic crisis.

Biden Plans to Address COVID-19

Vice President Biden plans to address the banking industry’s response to COVID-19 in a speech on Tuesday. The Vice President says banks must take responsibility for their roles in the crisis, and that he will hold them accountable. In his speech, Biden also plans to propose new regulations to protect consumers and taxpayers from future financial catastrophes.

Biden’s Approach to the Banking Industry

The Obama-Biden administration has been critical of the banking industry, but plans to change that under Vice President Biden. Biden’s approach to the banking industry is threefold: break up the large banks, put in place stricter regulation, and provide support for community banks.

Breaking Up The Large Banks. Under Biden’s plan, there would be a total of six large financial institutions (those with assets of more than $250 billion). These institutions would be broken up into two categories: commercial banks and universal banks. Commercial banks would focus on providing traditional banking products and services to businesses and consumers, while universal banks would offer a wider variety of products and services.

Stricter Regulation. To ensure that big banks are not able to take advantage of their size to engage in risky behavior, Biden plans to implement stricter regulations. These regulations would encompass areas such as capital requirements, limit interest rates on loans, and tighter restrictions on how much debt a bank can take on. Additionally, Biden wants to create a Consumer Financial Protection Bureau that will protect consumers from unfair practices by lenders.

Support For Community Banks. One of the main goals of Biden’s plan is to support community banks. These are small businesses that provide local customers with products and services they need but don’t typically find available from larger banks. By providing support for community banks, Biden hopes to help them grow and prosper while maintaining access to important financial products and services for consumers in rural

Biden’s Plan to Address COVID-19

The banking and credit industry has been in dire straits for years, with many banks failing and others struggling to stay afloat. In response, the Obama administration put into place a number of regulations aimed at cooling the market and protecting consumers. These include the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in 2010.

In light of these events, Biden plans to address COVID-19 head on. The VPOTUS plans to convene a White House summit on July 21st to brainstorm solutions to the crisis and lay out his plan for addressing it. Biden’s focus will be twofold: making sure that smaller institutions are able to stay afloat, and ensuring that consumers are protected from fraudulent or unsound loans.

Biden’s strategy is likely to face some resistance from lobbyists representing the large banks, but he is optimistic about its prospects. If successful, it could provide some much needed relief for both banks and consumers alike.

Conclusion

Vice President Biden’s address on Wednesday outlining his plans for the banking industry in the face of COVID-19 provides a much-needed glimpse into how he plans to manage what is certain to be a turbulent period. Biden has outlined three steps that will help ensure that Americans have access to safe, sound, and affordable banking: First, the administration will establish an interagency task force to identify gaps in regulation and make recommendations for addressing them. Second, Biden announced that FDIC Chairman Martin Gruenberg will chair a working group charged with developing reforms for the agency’s supervisory system. And finally, Biden vowed to provide $250 million in grants over five years to help community banks expand their lending operations. These steps are essential if we want to prevent widespread financial instability and protect consumers from being hurt by bad decisions made by large banks.