Collaboration between state and federal regulators is as equally important as state-to-state collaboration. In fact, today’s dynamic financial services industry demands increased state-federal regulatory coordination.
State-federal coordination top priority for CSBS, including ensuring that the perspective of state supervisors is represented at the highest levels of the federal government.
CSBS plays an integral role in facilitating state regulators’ representation on several federal bank supervisory councils and boards. These boards include the Financial Stability Oversight Council (FSOC) and the Federal Financial Institutions Examinations Council (FFIEC), among several others. Having a seat at the table with federal regulators ensures the state perspective on financial policy is considered and fosters a more informed financial regulatory regime in the U.S.
Financial Stability Oversight Council (FSOC)
The Financial Stability Oversight Council is a body of U.S. financial regulators that collectively identifies risks to the financial stability of the United States, promotes market discipline, and responds to emerging threats. FSOC was established in by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act requires one of the five non-voting members of the FSOC be a state banking supervisor and to be selected by the state banking supervisors.
In 2016, state banking supervisors appointed North Carolina Commissioner of Banks Ray Grace to serve a two-year term as the state banking representative on the FSOC. [Ray Grace Headshot]
Federal Financial Institutions Examinations Council (FFIEC)
The Federal Financial Institutions Examinations Council (FFIEC) was established to promote uniformity in the supervision of financial institutions. The group consists of six voting members representing the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Consumer Financial Protection Bureau, and the State Liaison Committee.
The State Liaison Committee (SLC) was established as part of the FFIEC in order to incorporate the state perspective and to make supervisory recommendations that promote uniformity at the state and federal level. The SLC is comprised of five representatives of state banking departments designated by CSBS, the American Council of State Savings Supervisors, the National Association of State Credit Union Supervisors (NASCUS), and the FFIEC.