Rep. Garcia Questions Fed Vice Chair on Bank Compliance Oversight

Oversight of Large Bank Compliance

• ❓ Rep. Sylvia Garcia questioned Federal Reserve Vice Chair Michelle Bowman regarding supervision of large banks for compliance with federal consumer protection laws, especially in the absence of the CFPB.
• 🏦 Bowman stated the Federal Reserve has responsibilities for a narrow set of consumer compliance regulations for state member banks.
• 🏛️ The OCC confirmed they have enforcement authority but not supervision authority for banks over $10 billion in assets, as this was removed by the Dodd-Frank Act.
• 🤷 The OCC representative indicated they were not aware of anyone else having taken on the specific supervisory role previously held by the CFPB for the largest banks.

Credit Union vs. Large Bank Examination

• 📉 Bowman noted that less than half of 1% of credit unions are over the $10 billion threshold, implying the CFPB's actions are less of an issue for them.
• ⚖️ Despite this, the Federal Reserve continues to enforce consumer law for the institutions they supervise.

Community Reinvestment Act (CRA) Modernization

• 📅 Rep. Garcia inquired about the suitability of 1995 CRA regulations for modern online and mobile banking, given the proposal to revert to them due to legal challenges.
• ❌ Acting Chair Hill indicated that modernizing CRA is worth considering and voted against the 2023 rule, finding it flawed.
• ⏳ The agencies are reviewing comments on a proposal to revert to the 1995 rule, which is considered a better option than the 2023 rule.
• ⏭️ It is premature to determine the next steps regarding CRA modernization until the comment review is complete.