Jun 10, 2013 Philip Burgess
State and federal agencies will be working together to monitor financial enterprises in the wake of a new policy. The Consumer Financial Protection Bureau (CFPB) recently announced that it has outlined a framework in which it can coordinate with state regulatory bodies.
A statement from the CFPB noted that the organization was happy to finally formulate a strategy to work in tandem with states regarding regulatory and supervisory operations. This has been in the works for several years.
"Our strong partnership with state regulators is critical to protecting consumers," said Richard Cordray, an official with the CFPB. "By working together, we are streamlining our processes, making the most of our joint resources and ensuring evenhanded oversight of federal consumer financial laws."
State bank regulators will now work with the federal entity to help simplify laws regarding debt collection and credit reporting, among other financial activities.
InsideARM reported that the new strategy is derived from a memorandum of understanding that the CFPB and Conference of State Bank Supervisors agreed to in 2011. The source stated that all non-depository enterprises will be regulated by the joint force, as will depository entities that have more than $10 billion in assets.