WASHINGTON — Regulators said Thursday that banks with more than $10 billion of assets as of June 30 will be subject to the supervision of the Consumer Financial Protection Bureau for at least a year.
In a joint statement issued by the bureau, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, National Credit Union Administration and Federal Reserve Board, regulators said the bureau would make an initial determination of asset size based on a company's June 30 call report data. After the initial determination, an institution generally will not be reclassified unless four consecutive quarterly reports indicate that a change in supervisor is warranted, according to a press release.
Under Dodd-Frank, banks with more than $10 billion of assets are subject to CFPB supervision for the purposes of federal consumer financial laws; other institutions will be supervised by their primary regulator.
The agencies wanted to determine a method for measuring asset size to determine which banks are subject to CFPB supervision. But they said frequent "point-in-time" measures would lead to uncertainty about a bank's principal supervisor, and could add to regulatory burden, especially for banks with assets close to the $10 billion threshold, since their asset sizes will likely change over time.
The guidance may be most helpful for those banks near the threshold, such as the $11.2 billion-asset Amegy Bank National Association in Houston, the $10.8 billion-asset Third Federal Savings and Loan Association of Cleveland, and the $10.8 billion-asset California Bank & Trust in San Diego.