Cordray says CFPB working to ensure cohesive approach to regulation

Richard Cordray

Consumer Financial Protection Bureau Director Richard Cordray told the Senate Banking Committee on Wednesday that the agency is working diligently to reduce regulatory burden and overlap.

“As the law contemplates, we have been coordinating the logistics of simultaneous examinations with our fellow agencies to reduce compliance burden for financial institutions,” Cordray said in prepared remarks, adding that the agency has hired examiners across the U.S. to handle the examinations.

Cordray also addressed his statutory role on the Financial Stability Oversight Council and efforts to carry experience from the CFPB to his position on the FSOC.

“Because we share the responsibility of regulating financial institutions with many of our fellow members of the FSOC, our mutual participation is helpful to our efforts to coordinate with one another so as to reduce overall regulatory burden and to maintain a collaborative approach to the work we do together,” Cordray said.

Cordray said that the CFPB is forming a “consultative rule-making process” with input from other agencies to “ensure that we develop rules that are consistent with the objectives and obligations of the prudential regulators and other agencies.”

Cordray also discussed regulatory and oversight goals pertaining to both banks and nonbank institutions, adding that the CFPB will adjust regulations as necessary based on the size of the institution.

“Our responsibility under the law, which is unique among the federal regulators, is to accomplish evenhanded and reasonable oversight of both banks and nonbank institutions that compete in the consumer finance markets,” Cordray said.

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