The Consumer Financial Protection Bureau will start reviewing outdated regulations that may be unfairly burdensome to financial institutions, according to the bureau’s acting leader.
Raj Date, the acting head of the CFPB, spoke with members of the ABA America’s Community Bankers Council on Wednesday in Washington, DC, telling them the bureau has an opportunity to streamline and simplify rules, ABA.com reports.
“I have been a vocal critic of the efficiency and effectiveness of bank regulation for my entire career,” Date said, according to ABA.com. “As an institution, we have no emotional attachment to the way things have been done in the past. If it doesn't make sense, we're going to stop doing it.”
The newly created bureau inherited many regulations that are now outdated due to technology changes, new market practices and a different legal landscape. Date said time has also made some of those rules counterproductive and obsolete.
Date asked the banking community to help identify such rules, according to ABA.com.
“What I ask is your help,” Date said, ABA.com reports. “We've already been burning a fair number of calories [on this issue]. I want to make sure we're burning them in the right place.”
Date has been working to ease some of the tension between the bureau and Republicans who worry about the power the CFPB will have over the financial industry.
During a House Financial Services Committee hearing held in early Nov., Date told lawmakers that the bureau’s rule-writing will be “sensible, fact-based, pragmatic and effective,” according to WSJ.com.