Consumer Financial Protection Bureau Director Rohit Chopra told Congress that engaging community banks is one of his key priorities as head of the agency.
Testimony: Testifying before the Senate Banking Committee on the CFPB’s semi-annual report to Congress, Chopra said he hopes to meet with all state community banking associations during his term in office, citing the importance of the relationship-banking model. Chopra also said the bureau is increasingly focusing on larger institutions that repeatedly violate the law, rather than investigating small firms, and simplifying its rulemakings.
Key Issues: The hearing nevertheless focused on some of the CFPB’s most contentious policy efforts affecting community banks, including:
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Its initiative targeting overdraft and non-sufficient-funds fees, which the bureau has dubbed “junk fees”—a label ICBA has rejected.
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Its proposal to implement new small-business loan data collection and reporting requirements under Dodd-Frank Section 1071, for which ICBA is seeking expanded community bank exemptions.
Nonbank Supervision: Chopra’s testimony came a day after the CFPB announced it is invoking a “dormant” legal provision to examine nonbank financial companies. ICBA last year called on the bureau to ensure nonbanks that access customer financial information take the same care in protecting consumer privacy and data as community banks.
Next: Chopra—who is scheduled to speak at next week’s ICBA Capital Summit—is on Capitol Hill again today to testify before the House Financial Services Committee.
