In “an effort to address any potential legal uncertainty resulting from examiners’ reliance on guidance, policy statements, and similar communications as the basis for supervisory mandates,” the Bank Policy Institute and American Bankers Association submitted letters this week to petition regulators and the Consumer Financial Protection Bureau for formal rulemaking regarding the use of supervisory guidance.
Recently, and in response to growing concerns about regulators’ overreliance on guidance, bank regulators and the CFPB issued an Interagency Statement confirming that supervisory guidance does not have the force of law, and that bank examiners should not take enforcement actions based on supervisory guidance.
