Michael Barr, the Vice Chair for Supervision of the Board of Governors of the Federal Reserve, testified during a House Committee on Financial Services hearing on Oversight of Prudential Regulators on Capitol Hill in Washington, DC, on May 16, 2023.
Mandel Ngan | AFP | Getty Images
The Federal Reserve’s top banking regulator addressed concerns today regarding the potential impact of artificial intelligence (AI) on equal access to housing in underserved communities.
Michael S. Barr, the Vice Chair for Supervision at the Federal Reserve, acknowledged the benefits of AI technology in expanding credit opportunities for individuals who may not have traditional access to it.
Nevertheless, Barr highlighted the potential dangers of AI, particularly its use in perpetuating discrimination and exclusionary practices such as “redlining” in the housing sector.
While recognizing the immense potential of AI, Barr emphasized the paramount importance of compliance with fair lending laws to prevent further exacerbation of existing disparities.
He specifically highlighted the concept of “digital redlining,” where AI can be manipulated to deny credit and housing opportunities to communities of color. In contrast, “reverse redlining” occurs when subpar lending products are targeted at minority areas.
Barr assured that the Federal Reserve and other regulatory bodies are actively working on initiatives such as the Community Reinvestment Act to ensure equal access to credit for underserved communities.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
