Five federal agencies—including NCUA and the CFPB—issued a joint statement explaining the role of supervisory guidance for regulated institutions.
The statement from the agencies—which was also signed by the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency—confirms that supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. The joint statement explains that supervisory guidance can outline the agencies’ supervisory expectations or priorities and articulate the agencies’ general views regarding appropriate practices for a given subject area.
New York Credit Union Association President/CEO William J. Mellin said this joint statement may improve communication overall.
“The joint statement may help improve communications between the regulator and the regulated,” he said. “Credit unions may wish to reference the statement when discussing their examination findings with their assigned examiner. It is a good sign to see regulators taking a unified approach when examining financial institutions.”
To view the interagency statement, click here.