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From Banking and Finance Law Daily, May 22, 2013

CFPB, CSBS Coordinate on Supervision and Enforcement

By Katalina M. Bianco, J.D.

The Consumer Financial Protection Bureau and the Conference of State Bank Supervisors (CSBS) have developed a framework that establishes a process for coordination on supervision and enforcement matters when the CFPB and state regulators share supervisory jurisdiction. The framework applies to all non-depository institutions and those depository institutions with over $10 billion in assets.

The Dodd-Frank Act requires the CFPB to coordinate supervisory activities with state banking regulators. The framework is intended to facilitate the implementation of this statutory requirement by providing a guide for regulatory coordination.

“Our strong partnership with state regulators is critical to protecting consumers,” said CFPB Director Richard Cordray in the bureau’s announcement. “By working together, we are streamlining our processes, making the most of our joint resources, and ensuring evenhanded oversight of federal consumer financial laws.”

Framework details. The framework is based on a memorandum of understanding (MOU) signed by the CFPB and the CSFB in January 2011, and a Statement of Intent published in December 2012, that provide 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.

The framework provides processes for:

  1. coordinating exam schedules;
  2. developing comprehensive supervisory plans for particular institutions;
  3. coordinating information requests;
  4. streamlining information sharing;
  5. providing advance notice of corrective actions; and
  6. resolving significant differences concerning the supervision of institutions identified for examination.

The framework provides that information shared between the CFPB and the CSBS is subject to the confidentiality requirements outlined in the MOU, any agreements between the CFPB and any particular state regulator, and applicable laws.

RegulatoryActivity: CFPB DoddFrankAct EnforcementActions StateBankingLaws

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