A memo released by the Federal Reserve's Division of Supervision and Regulation calls on bank examiners to refrain from providing "excessive attention to processes, procedures and documentation that do not pose a material risk." In addition, Fed examiners should rely more on exams and supervisory work by a depository institution's primary state or federal regulator before carrying out their own examinations and when rating banks, the memo says. "By anchoring our work in material financial risks, we strengthen the banking system's foundation while upholding transparency, accountability and fairness," Fed Vice Chair for Supervision Michelle Bowman said.

The Treasury Department is aiming to ensure that banks and nonbanks are competing on a "level playing field" as fintech companies could create pressure on low-cost deposits, a cornerstone of the banking industry, Treasury Undersecretary for Domestic Finance Jonathan McKernan said at a fintech industry event. "Like it or not, technology is going to pressure that dynamic" for such deposits, potentially causing "a profound change in market structure," McKernan said. "We need to think about the implications of that -- the implications for consumers, for growth, credit, for maturity, liquidity, intermediation," he said.

A global service degradation struck internet infrastructure company Cloudflare on Monday, briefly disrupting online access to several banks and financial institutions. During the incident, customers reported intermittent issues with digital banking platforms, highlighting financial services' vulnerability to disruptions in key internet infrastructure providers. A 2023 Treasury Department report says that the "current cloud services market is concentrated around a small number of service providers," exposing many companies in the sector "to the same set of physical or cyber risks."

Klarna reported record revenue of $903 million, a 26% jump from a year earlier, in its first quarterly earnings report as a public company, although losses soared to $95 million as the Swedish fintech tries to expand into traditional lending. Klarna -- known for its buy now, pay later services -- detailed its ambition to evolve into a full-fledged neobank. CEO Sebastian Siemiatkowski said Klarna's unique approach to customer acquisition -- tapping into checkout experiences with prominent brands -- positions the company to deepen relationships and efficiently expand revenue per user.

Small and midsize businesses are optimistic about 2026, with 74% of owners projecting revenue increases and 60% expecting growth in operations, according to a Bank of America survey. Meanwhile, about half of respondents said economies at all levels likely will see positive effects from lower inflation and more stable tariff policies, the survey found. However, most business owners report supply chain challenges and labor shortages, with just 1% of business owners planning layoffs and over 40% looking to hire.

With a policy meeting approaching in December, the Federal Reserve will receive some of the data delayed by the shutdown, potentially affecting policymakers' outlook on the economy. Federal Reserve Bank of Richmond President Tom Barkin noted that, in his view, the labor market may be softer than the numbers have shown. "If you ask businesses how they see the labor market today, they say, 'balanced.' But as they describe that 'balance' in more detail, it doesn't seem so," Barkin said.

The Office of the Comptroller of the Currency has issued guidance allowing banks to hold cryptocurrency on their balance sheets to pay network fees, such as ethereum "gas fees." The move reflects a broader shift in regulatory stance toward crypto under the Trump administration, with the Federal Reserve and the OCC clarifying rules for banks holding crypto on behalf of customers.