In an important joint statement issued today, the financial regulatory agencies clarified the role of supervisory guidance in bank supervision, noting that it “does not have the force and effect of law.” Regulators from the Federal Reserve, Federal Deposit Insurance Corporation, Office of Comptroller of the Currency, Consumer Financial Protection Bureau and the National Credit Union Administration affirmed that supervisory guidance is intended to outline expectations and general views regarding appropriate practices for a given subject area, and that they would not pursue enforcement actions based on it.
The agencies highlighted additional ongoing efforts to clarify policies and practices related to supervisory guidance. Specifically, they said they would: limit the use of numerical thresholds or bright-lines when outlining expectations in supervisory guidance; not criticize institutions for “violations” of supervisory guidance; strive to reduce the issuance of multiple guidance documents; and continue working to clarify the role of supervisory guidance in communications with exam teams and supervised institutions. They also noted that seeking public comment on guidance does not signal that the guidance is intended to have the force and effect of a regulation or law.
Read the joint statement.
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NCUA never enforced guidance like the banking regulators do so no change for CU's. FDIC would write it up as a contravention of guidance
ReplyDeleteHell NCUA doesn't even enforce the regs let alone guidance
Regulatory guidance directing credit union to ignore regulatory guidance!? Newspeak? Doublethink?
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