A Consumer Financial Protection Bureau watchdog has issued a report offering a dozen recommendations to help the agency improve its supervision.
Significant progress has been made by the CFPB in developing and implementing a comprehensive supervision program for depository and non-depository institutions.
But the nearly three-year-old regulator can do more to improve the efficiency and effectiveness of its supervisory activities.
That was according to a report from the Office of Inspector General for the Federal Reserve Board and the CFPB entitled, The CFPB Can Improve the Efficiency and Effectiveness of Its Supervisory Activities.
The report is the result of an initial evaluation to assess the operational efficiency and effectiveness of the bureau’s supervision program. It was based on data as of July 31, 2013.
The OIG said that reporting timeliness needs to be improved at the CFPB. Also, the number of yet-to-be-issued examination reports needs to be reduced.
In addition, the report stated that the bureau needs to “adhere to its unequivocal standards concerning the use of standard compliance rating definitions in its examination reports” and “update its policies and procedures to reflect current practices.”
In all, 12 recommendations were made by the OIG.
Responses from CFPB officials indicated that CFPB management has taken various measures to address certain findings in the report.
“The report contains specific suggestions regarding additional policies, reporting metrics and other enhancements to the CFPB’s supervisory process,” CFPB Deputy Director and Associate Director Steven L. Antonakes said in a letter to Senior OIB Manager for Supervision and Regulation Michael VanHuysen. “We concur with the recommendations made in the report.”
Antonakes’ letter went on to say that the CFPB will be taking steps to adopt and implement the recommendations.
