Rep. Williams Increases Coordination Between State and Federal Banking Regulators
Press Release
Congressman Roger Williams (TX-25) and Congressman Gregory Meeks (NY-05) reintroduced the bipartisan Bank Service Company Examination Coordination Act (BSCECA) of 2021 to make banking supervision more efficient.
"There is a dire need for banking regulators to communicate and resolve the current inefficiencies between state and federal coordination," said Congressman Williams. "This legislation promotes good governance by allowing regulators at each level of government to share the results of their regulatory exams. As the risks to our financial system get more advanced each day, we must ensure there are open lines of communication and that we are using our limited resources efficiently as we look for new vulnerabilities within the banking system."
"Texas, alongside 37 other states, has the authority to examine banks' third-party service providers (TSPs), which banks use to expand the services that consumer want and the back-office functionality that keeps them competitive. The Bank Service Company Examination Coordination Act makes clear Congress's intent that federal and state bank regulators share information about these companies and the potential risks they pose to individual banks and the broader banking system. State regulators have substantial expertise gained by overseeing 79% of U.S. banks. With cybersecurity and ransomware threats continuing to rise, increased state-federal coordination will make our financial system more secure." - Charles Cooper, Texas Department of Banking Commissioner
"State bank regulators support enactment of the Bank Service Company Examination Coordination Act, which will enable better state-federal information sharing and exam coordination on banks' third-party vendors. By working together, state and federal regulators can better mitigate risks for a financial institution and its customers and protect the stability of the entire banking system where state regulators oversee nearly four in every five U.S. banks. We thank Representatives Meeks (D-NY) and Williams (R-TX) along with Senators Cramer (R-ND) and Sen. Warren (D-MA) for advancing this important legislation." - John W Ryan, Conference of State Bank Supervisors President and CEO
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