As the Consumer Financial Protection Bureau (CFPB) has relayed a strong message to consumers that there is "a new cop on the beat" to protect them against unfair practices by financial services firms, the developing agency has also been expressing a commitment to protecting small banks and institutions from overwhelming regulatory burdens.
According to a blog post on the CFPB website, Elizabeth Warren, the special assistant tasked with setting up the new agency, has made an extended effort to meet with representatives of small bankers from all 50 states to discuss their concerns and discuss the CFPB's goal to limit the impact of regulatory reform so that they can continue to effectively serve their customers.
As part of this effort, Warren was a key note speaker at the Independent Community Bankers Association annual conference last month. She spoke of understanding that complex regulations bring forth high costs that are difficult for small institutions to bear and that the goal is to simplify regulations to make it easier for consumers to understand the financial transactions and services and make requirements clear and straight forward for the smaller institutions to comply. She stated a belief that this approach provides the CFPB has a unique opportunity to reform regulations in a way that reduces regulatory and compliance costs.
An excerpt of her remarks highlighting this commitment follows:
