CFPB Plan To Expand Nonbank Exams Stirs Bank Jitters

By Jon Hill (June 3, 2022, 10:21 PM EDT) — A Consumer Financial Protection Bureau initiative that could bring more fintech firms and other nonbanks under the agency’s supervisory umbrella is making some bankers nervous about unintended consequences.

Although the banking industry has often called for increased regulatory oversight of its nonbank fintech competitors, the CFPB’s recent plans for expanding its supervision of the nonbank sector have drawn mixed reaction from banking groups as part of a comment period that closed Tuesday.

These plans involve firing up the CFPB’s little-used authority to conduct regular exams at any nonbank that the agency determines is a potential risk to consumers. Once this determination…

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