The Federal Reserve in 2014 will overhaul its consumer compliance supervision program for community banks, Fed Governor Jerome Powell said at a community bank research conference in St. Louis.
Powell said that the Fed will provide “more specific guidance” to examiners. “Under the updated program, our consumer compliance examiners will base the examination intensity more explicitly on the individual bank’s risk profile, including its consumer compliance culture and how effectively it identifies and manages consumer compliance risk,” he explained. Examiner training will begin later this year, he added.
Powell also emphasized the Fed’s commitment to regulation that fosters “a large and vibrant contingent” of community banks. “The Federal Reserve will continue to be alert to the possible unintended consequences of regulatory policies, and we welcome input from community bankers as we develop and implement those policies,” he said.
Read the speech.