The Consumer Financial Protection Bureau officially opens its doors July 21 and one of its first initiatives will be to reach out to the 111 largest U.S. banks to establish lines of communications as it prepares to conduct its first on-site examinations later this year.
The CFPB transition team has hired more than 100 experienced examiners. It plans to conduct informational roundtables with the banks in early August to provide them with information about the new bureau's supervision and examination process.
"Starting on July 21, we will be the cop on the beat -- examining banks and protecting consumers," said Elizabeth Warren who heads the CFPB transition team.
Former Massachusetts bank commissioner Steve Antonakes is in charge of bank supervision and examination at the CFPB.
Under the Dodd-Frank Act, the CFPB is charged with supervising the largest banks with more than $10 billion of assets in regards to compliance with consumer protection and fair lending laws. Prudential regulators will continue to have this responsibility for smaller banks.
"Examiners will look at the products and services the institution offers, with a focus on risk to consumers. The institution’s compliance with requirements during the entire life cycle of the product or service will be reviewed, including how a product is developed, marketed, sold and managed," the agency said in a press statement. "During an examination, the CFPB will assess each institution’s internal ability to detect, prevent, and remedy violations that may harm consumers by reviewing the institution’s internal procedures and conducting interviews with personnel."
