The Conference of State Banking Supervisors wants to focus on networked supervision, a strategy that uses technology, data and uniform practices to standardize regulation.
The collaborative approach to regulation will help improve risk management and data sharing, as well as streamline partnership opportunities with federal regulators, CSBS said.
“Technology is constantly changing every sector of financial services. And it is changing how states regulate these service providers. State regulators are focusing on how technology can make us ever better and more effective,” said CSBS President John Ryan, addressing attendees at the Nationwide Multistate Licensing System annual conference.
Ryan cited the State Examination System, launched last year, which allows examiners to collect information and perform some aspects of exams remotely.
“Networked Supervision is the next logical step as we continue to evolve and strengthen financial regulation,” Ryan said. “The challenges that come with a changing financial services landscape must be met with an integrated and empowered state system.”
For banks, CSBS wants to create a community of large bank examiners to examine current practices and identify streamlining opportunities. For nonbank companies, it will try to coordinate cyber-risk examinations to ease regulatory burden, provide more consistency and enhance effectiveness.
For mortgage companies, CSBS will pilot a joint, multistate exam through the One Company, One Exam program to reduce duplicative exams for nationwide mortgage companies. It will also finalize and approve model regulatory prudential standards for nonbank mortgage servicers to create consistent standards for safety and soundness and corporate governance.
CSBS announced the creation of an executive leadership team as part of a reorganization. It will consist of:
- James Cooper, who leads the policy and supervision division. He came to CSBS in 2013, following 30 years in bank supervision and regulation, most recently as deputy director of depository institutions at the Indiana Department of Financial Institutions.
- CSBS general counsel John ‘Buz’ Gorman. Prior to joining CSBS, Gorman covered work and environmental issues for former Florida Senator Connie Mack.
- Leila Green, who leads the newly consolidated finance and facilities functions. She joined CSBS in May 2019 after serving as vice president of business operations at RTCA, Inc.
- Kelly Haire, who leads the company’s human resources initiatives, now known as the people operations division. She joined CSBS as vice president of human resources in 2014.
- Tom Harlow, who leads the newly formed products business unit. Harlow joined CSBS in 2010 as chief financial officer and previously spent over 20 years in association management.
- Margaret Liu, who leads the newly formed services division, which consolidates stakeholder engagement, learning, communications and innovation functions. She joined CSBS in 2009 after serving as a financial services policy consultant and holding a variety of positions at Fannie Mae.
- Ngoc Vu, chief information officer who now also heads information technology. She joined CSBS in February of 2017 as senior vice president of digital services.