1. Oversight and Examination of
Financial Institutions
Todd Berry, EdD
Senior Director
Conference of State Bank Supervisors
2. Agenda
• Introduction
• History of CSBS
• Role of CSBS
• Supervisory and Regulatory Responsibilities
• Automated Examination Tools
• Regulatory Partnerships
• Closing
• Questions
3. Introduction
• 20 years of experience
• 18 years of consulting experience across industries
– Finance and banking (US and Germany)
– Government (US and UK)
– Education (Universities and Public School Systems)
– Manufacturing
– Non-profit
– Technology
• Undergrad in Computer Science, German, Economics
• Grad in Technology Management and Organizational
Leadership
4. History of CSBS
• Founded in 1902
• Non profit member driven organization
• Only national organization dedicated to protecting and
advancing the nation’s dual-banking system
5. What is a “Dual-Banking System”?
• State banks and national banks are chartered and
supervised at different levels
• National banks are chartered and regulated under
federal laws and standards and by a federal agency
– Citibank
– Bank of America
– JP Morgan Chase
• State banks are chartered and regulated under state
laws and standards and supervised by a state regulator
– BlueRidge Bank
– CFG Community Bank
– Chesapeake Bank and Trust Co.
6. Role of CSBS
• Advocate for the state banking system
• Provide the state perspective on federal regulatory policy
proposals
• Facilitate state representation on the Federal Financial
Institutions Examination Council (FFIEC)
• Represent state banking agencies’ needs and
perspectives on technology issues such as the
development of automated examination tools
• Serve as a critical conduit between state supervisors and
the federal government during national emergencies
8. Supervisory and Regulatory Responsibilities
• CSBS provides supervisory and regulatory assistance to
state regulators
– State regulators supervise ~5,000 state-chartered financial
institutions
– Over $4.9 trillion in combined assets
– Most state banking departments oversee mortgage providers
and other financial service providers
– State regulators license over 16,000 mortgage companies with
over 100,000 MLO’s
9. Policy Development and Advocacy
• Staff develops policy proposals and position papers
– Public comment period of 30 – 60 days
– Presented to state representatives in Congress
• Often invited to Capitol Hill to discuss issues such as
– Dodd-Frank Act
– Community Banking
– Consumer Protection
– Effective Supervision and Regulation
10. Professional Development
• CSBS offers a wide array of training from Advanced
Commercial Credit Analysis to Fraud Identification
Training
• Courses can be on-line or in person
• Courses are available for continuing education, new
skills development, and executive education
• Schools include Credit Evaluation School, Examiner-in-
Charge School, Problem Bank School, and Trust
Examiner School
11. Examination and Certification
• Examiner Certification Program
– 18 designations
– Open to all state bank examiners
• State Banking Department Accreditation Program
– Voluntary and is not required for CSBS membership
– Comprehensive review of critical elements of a banking
department’s processes
– Investigates administration and finances, personnel policies and
practices, training programs, examination policies and practices,
etc.
12. Automated Examination Tools
• General Examination System (GENESYS)
– Developed in 1999
– One major update in 2005
• Automated Loan Tool (ALERT)
– Developed in 1996
– Mostly unchanged
• Examination Tools Suite
– Developed in 2010
– Incorporates the two tools above
– Updated quarterly (technical and functional)
– Added additional functionality for examination management
14. Consumer Financial Protection Bureau
• Independent agency, housed within the Fed
• Led by a Director, appointed by the President, and confirmed
by the Senate
• Funded by the Fed
• No authority to impose assessments or regulatory fees
• Formally established on July 21, 2011by the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010
http://www.consumerfinance.gov
15. Financial Crimes Enforcement Network
• Independent agency, housed within the US Department
of the Treasury
• Reports to the Treasury Under Secretary for Terrorism
and Financial Intelligence
• Receives and maintains financial transaction data from
various sources
• Analyzes and disseminates data for law enforcement
purposes.
http://www.fincen.gov
16. Financial Industry Regulatory Authority
• Independent, non-profit organization authorized by
Congress
• Protects America’s investors by ensuring integrity in the
securities industry
• Deter misconduct by enforcing the rules
• Discipline those who break the rules
• Detect and prevent wrongdoing in the U.S. Markets
• Educate and inform investors
• Resolve securities disputes
http://www.finra.org
17. Federal Financial Institutions Examination
Council
• Interagency body that prescribes uniform principles,
standards, and report forms for the federal examination
of financial institutions
• Backed by the Board of Governors of the Federal
Reserve System, the FDIC, the NCUA, the Office of the
Comptroller of the Currency, and the CFPB.
http://www.ffiec.gov
18. Closing
• Non-profit, member driven organization (not a
government agency)
• Strong advocate for protecting and advancing the
nation’s dual-banking system
• Maintains strong partnerships with industry regulators
• Provides regulatory and supervisory services to state
banks and state regulators
