Depository Issues

State regulators are responsible for chartering, licensing and supervising state-chartered banks and non-bank financial services providers, including mortgage lenders.

State financial regulators serve as the primary regulator for 78 percent of the nation's banks. In this role, state regulators have an important mandate to ensure safety and soundness among their chartered financial institutions.

In 2016, CSBS helped state regulators complete a nationwide, multi-year initiative to implement the next generation of bank examination tools, known as the Examination Tools Suite (ETS).

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.

CSBS recommendations adopted in the 2016 Financial CHOICE Act include a provision stating state regulators be included in the regulatory processes related to capital election.

Community banks offer tailored mortgages to homebuyers in local communities throughout the country. Many community banks hold those mortgages in their portfolio for the life of the loan.

There is general recognition of the regulatory costs and obstacles facing community banks.