Recently, and in response to growing concerns about regulators’ overreliance on guidance, bank regulators and the BCFP importantly issued an Interagency Statement confirming that supervisory guidance does not have the force of law, and that bank examiners should not take enforcement actions based on supervisory guidance. The Interagency Statement, a promising step forward, reaffirms the status of guidance under existing law. The question is how it changes regulatory practice. To institutionalize this recognition, and particularly to promote its prompt and consistent observance by examiners and other agency personnel, the BPI and ABA are asking for regulators to formalize the Interagency Statement in the form of a binding regulation, so as to ensure it endures over time and is followed consistently across the country.
You Might Also Be Interested In...
Supervision & Enforcement
BPI Offers Recommendations to NY Financial Services Regulator on a Re-Proposed Regulation on Disclosure of Confidential Supervisory Information
Supervision & Enforcement
Banking Regulators Respond to BPI and ABA’s Petition Codifying Guidance Is Nonbinding
Supervision & Enforcement
BPI Responds to Fed, FDIC’s Request for Information on CAMELS Rating System
More Posts by This Author
FinTech & Innovation
Central Bank Digital Currencies: Costs, Benefits and Major Implications for the U.S. Economic System
Central Bank Digital Currency
The Benefits and Costs of a Central Bank Digital Currency for Monetary Policy
Bank Activities and Structure
BPI President and CEO Greg Baer Submits Formal Statement for HFSC Subcommittee Hearing Examining Trends in Financial Institution Charters
Bank Conditions and Credit Availability
BPI and Industry Coalition Encourage Federal Legislation to Address ‘Tough Legacy’ Contracts
Security
BPI and Coalition of Trades Express Support for Computer-Security Incident Notification Rulemaking Effort and Recommend Important Changes to Better Align the Proposal to the Intended Outcomes