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Bureau Expands Efforts to Coordinate with State Bank and Nonbank Regulators on Supervision and Enforcement Matters
WASHINGTON D.C. – Today, the Consumer Financial Protection Bureau (CFPB) and the Conference of State Bank Supervisors (CSBS), acting on behalf of state financial regulatory authorities, announced a framework which establishes a process for coordination on supervision and enforcement matters. The framework will apply in situations where the CFPB and state regulators share concurrent supervisory jurisdiction.
“Our strong partnership with state regulators is critical to protecting consumers,” said CFPB Director Richard Cordray. “By working together, we are streamlining our processes, making the most of our joint resources, and ensuring evenhanded oversight of federal consumer financial laws.”
The framework is based on a memorandum of understanding (MOU) signed by CFPB and CSBS in 2011 and a corresponding 2012 Statement of Intent issued by the CFPB. The MOU provides that state regulators and the CFPB will consult on standards, procedures, and practices used to conduct examinations of providers of consumer financial products and services to ensure that they are complying with federal consumer financial law. The framework applies to all non-depository institutions and those depository institutions with over $10 billion in assets.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the CFPB to coordinate supervisory activities with state bank regulators. The framework announced today facilitates the implementation of this statutory requirement by providing a guide for flexible and dynamic regulatory coordination that both protects consumers and reduces regulatory burden on industry. Among other things, the framework provides processes for:
- coordinating exam schedules;
- developing comprehensive supervisory plans for particular institutions;
- coordinating information requests;
- streamlining information sharing; and
- providing advance notice of corrective actions.
By working together in these key areas, both the CFPB and state regulators will maximize their resources and better protect consumers.
A copy of the framework can be found at: http://files.consumerfinance.gov/f/201305_cfpb_state-supervisory-coordination-framework.pdf
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.