Todd Berry gave a presentation on the oversight and examination of financial institutions by the Conference of State Bank Supervisors (CSBS). CSBS represents state banking regulators and ensures compliance of state-chartered banks. It develops regulatory policy, provides training to examiners, and maintains automated examination tools used by state regulators. CSBS also partners with federal agencies like the CFPB and FinCEN and advocates for the dual banking system of state and national bank charters.

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

7. CSBS District Map

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

13. Regulatory Partnerships

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

19. Questions
谢谢
Thank you!
Todd Berry, EdD
todd.berry@novaturient.com
http://www.linkedin.com/in/toddgberry