The Consumer Financial Protection Bureau (CFPB) implementation team signed a memorandum of understanding (MOU) with the Conference of State Bank Supervisors (CSBS) to establish a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services.

The memorandum is an important step in implementing a constructive balance between federal and state regulation of firms and a starting point for additional state agreements as the states and the CFPB work to fulfill their mandates.  The endeavor will promote consistent examination procedures and effective enforcement of state and federal consumer laws and to minimize regulatory burden and efficiently deploy supervisory resources said the CSBS.

“The new consumer financial agency and the state banking regulators are forging an alliance to protect American families,” said Elizabeth Warren, special advisor to the Secretary of the Treasury on the CFPB. “This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules.”

“Today is an important day for financial supervision,” said Thomas Gronstal, Chairman of CSBS.  “The formalized coordination between the states and the federal government established by the MOU will do much to create a comprehensive and seamless system of financial supervision and is a step toward a more cooperative system of supervision, which will benefit consumers and financial services providers alike.”