- New Jersey-based crypto-friendly Cross River Ban received a consent order from the FDIC seeking further oversight, even as the action isn’t tied to its crypto activities.
- The bank is well known for serving crypto enterprises such as Coinbase and Circle.
New Jersey-based crypto-friendly Cross River Bank has received a consent order from the Federal Deposit Insurance Corporation (FDIC) seeking further oversight, according to a filing made public on 28 April.
In the filing, the FDIC argued that Cross River Bank engaged in risky or unsound banking practices in violation of fair lending laws and regulations. Through a related agreement, the regulator demanded that the company implement greater oversight and controls, as well as make amends.
The order reads,
“The FDIC considered the matter and determined, and the Bank neither admits [nor] denies, that it engaged in the unsafe or unsound banking practices related to its compliance with applicable fair lending laws and regulations by failing to establish and maintain internal controls, information systems, and prudent credit underwriting practices…”
A Cross River Bank representative told the Wall Street Journal that the action is tied to a review of the company’s lending practices beginning 2021, rather than its cryptocurrency or payments business activity.
U.S. banking crisis fuels further scrutiny
Since the bank has been in operation for over a decade, the FDIC may increase its scrutiny of such financial institutions in the aftermath of the recent banking crisis.
The FDIC had earlier also questioned the bank in 2018, requiring the company to adjust certain practices and pay a fine of about $642,000.
Cross River Bank is well-known fo
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Author: Suzuki Shillsalot
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