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2017 Press Releases
Florida and Arkansas Begin Using Uniform Mortgage Test; 54 State Agencies Now Using the Test
State Regulators Oppose OCC Special Charter For Non-Banks
State Financial Regulators Release BSA/AML Compliance Tool for Industry
CSBS Board Appoints Wyoming’s Albert Forkner as Chairman-Elect
State Regulators Promote “Fintech Friendly” Features of National Registry
College Students Participate in Nationwide Community Bank Competition
Statement on the Illinois Fintech Regulatory Roundtables
CSBS Urges Congress to Weigh in Against OCC Non-Bank Charter
State Regulators Highlight EGRPRA Priorities for Financial Regulatory Relief
Gonzales, Hughes and Jones Re-Appointed to FFIEC State Liaison Committee
State Regulators Announce Changes to Money Services Businesses Reporting
State Regulators Issue Cease-and-Desist Orders to Subsidiaries of Ocwen Financial Corp.
CSBS Files Complaint Against Comptroller of the Currency
Gonzales Elected as State Liaison Committee Chairman
Stork Appointed to FFIEC State Liaison Committee
CSBS Announces Vision 2020 for Fintech and Non-Bank Regulation
CSBS Statement on New York Department of Financial Services Lawsuit Against OCC
CSBS Announces Five Finalist Teams in the 2017 Bank Case Study Competition
CSBS Announces New Leadership
The University of Akron Wins First Place in CSBS Community Bank Competition
Fed Chair Yellen Will Open 2017 Fed/CSBS Community Banking Research Conference;
FFIEC Proposes Additional Revisions to Streamline “Call Report” for Small Institutions
State Regulators Call for an End to One-Size-Fits-All Bank Regulation
State Regulators and U.S. Secret Service Issue Industry Best Practices for Combating Cyber Crime
Louisiana Regulator to Guide Nationwide Licensing and Supervision System for Fintechs and Other Non-Banks
State Regulators Issue Annual Reports on Non-Bank Supervision
CSBS Launches Fintech Advisory Panel to Help Modernize State Regulation
CSBS to OCC: Fintech Charter Lacks Legal Authority
CSBS Names Kyle Thomas Vice President, Accreditation and Supervisory Processes
State Regulators File Suit Over Unauthorized Use of Licensing Test Information
Statement on Financial Innovation Symposium hosted by Western States Financial Regulators
2018 CSBS Case Study Competition to Focus on Financial Innovation
Federal and State Banking Agencies Issue Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Irma
State Regulators Launch Redesign for Next Generation Technology Platform; Core Component of CSBS Vision 2020
South Carolina Begins Using Uniform Mortgage Test; 57 State Agencies Now Using the Test
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Media Release

Conference of State Bank Supervisors
        1129 20th Street, NW, 9th Floor, Washington, DC, 20036

 State Regulators Oppose OCC Special Charter For Non-Banks  

CSBS Comment Letter Warns OCC Fintech Charter Will Harm Innovation and Consumers,
Threaten Financial System and Taxpayers

(Washington, DC) - The Conference of State Banking Supervisors (CSBS) submitted a comment letter today reiterating its opposition to the Office of the Comptroller of the Currency (OCC) proposal to issue a special charter for fintech companies. 

  • CSBS argues a federal charter for fintech companies will harm consumers and the U.S. financial system by:
  • Putting the OCC in the position of arbitrarily picking winners and losers in the fintech marketplace;
  • Weakening consumer protections by once again pre-empting existing, effective state laws;
  • Exposing taxpayers to the risk of fintech failures; and 
  • Exceeding the legal limits of the OCC's chartering authority.

“The OCC’s unauthorized expansion of power should not be allowed to move forward because it exceeds its legal authority and makes an end run around Congress,” said John Ryan, CSBS president and CEO. “A federal charter would stifle innovation, not foster it, and advantage large, established institutions at the expense of new and small ones. No one should have a monopoly on innovation.” 

“The proposal would also create a new category of risk to taxpayers and the federal government,” said Ryan.  “Fintechs want access to the Fed payments system and discount window, but not strict oversight.  In the event of fintech failures, taxpayers would be left holding the bag.”

“Finally, the OCC action would preempt important state consumer protection laws.  The OCC has a history of harming consumers through preemption. In the lead-up to the U.S. financial crisis, the OCC preempted state anti-predatory lending laws for national banks,” said Ryan.  “Congress was forced to step in and limit the OCC’s authority.  We shouldn’t repeat the mistakes of the past.” 

CSBS urges policymakers to oppose the OCC’s proposed fintech charter and insist that the agency refrain from acting beyond its legal authority, stifling innovation and also creating new risk to consumers and taxpayers. 

Congress created the dual-banking system where state and federal bank regulators collaborate to provide effective supervision for banks and the larger financial services marketplace.  State financial regulators monitor safety and soundness of chartered and licensed institutions; foster a thriving, diverse, and innovative financial system; ensure that financial institutions are operating within the law; and protect their communities from illegal and predatory practices. State regulators play a critical role in the nation’s economy by ensuring state-chartered financial services providers operate in a safe and sound manner as they serve state and local credit markets. 

Comment Letter [PDF].

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