The Consumer Bankers Association (CBA) reached out to leaders of the Senate Banking Committee to discuss a variety of concerns related to banking regulations.
In a letter to committee Chairman Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH), CBA President and CEO discussed the use of proper regulatory guidance, the need for experienced bank examiners, and the importance of regulatory coordination among supervisory agencies.
“CBA supports a regulatory framework that provides clear rules of the road which have been vetted through formal notice and comment periods,” Hunt wrote. “The rulemaking process, as mandated by the Administrative Procedure Act and the Dodd-Frank Act, is time-consuming for a reason: it demands agencies adhere to a strict process that invites those who are affected by a proposal to have a say in the creation of the rule. While we are strong proponents of formal rulemaking, we also recognize there is an appropriate role for regulatory guidance to provide financial institutions with needed clarity.”
He also restated CBA’s support for the bipartisan GUIDE Act and calls for legislation similar to the Financial Institution’s Examination Fairness and Reform Act.
“Bank examinations are an essential function of the regulatory process that oversees financial institutions and ensures compliance with regulations and adherence to safety and soundness standards,” Hunt wrote. “It is critical prudential bank examiners and CFPB examiners be experienced, competent and conduct their jobs without pre-judgment. Unfortunately, it has been the experience of some CBA members that CFPB examiners have had little to no experience making examinations disjointed, overly burdensome, and time-consuming. CBA also strongly encourages the CFPB to promote a level regulatory playing field through the robust supervision of nonbanks, who are playing an increasingly large role in mortgage originations and consumer deposit taking, among other areas.”
Finally, Hunt urged the Consumer Financial Protection Bureau to “promote a level regulatory playing field through the robust supervision of nonbanks, who are playing an increasingly large role in mortgage originations and consumer deposit taking, among other areas.”
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