CFPB Publishes Supervisory Statement on Determining $10 Billion Asset Threshold

Nov. 21, 2011 - The Bureau of Consumer Financial Protection (CFPB) and the federal bank regulators including the National Credit Union Administration (NCUA) have jointly published a Supervisory Statement on how and when they will determine the total assets of an insured depository institution or an insured credit union for purposes of determining primary supervisory and enforcement responsibilities under the Dodd-Frank Act.

Under §1025 of Dodd-Frank , the CFPB has exclusive supervisory authority and primary enforcement authority with respect to institutions with total assets of more than $10 billion for purposes of federal consumer protection law.  Determination of which institutions immediately fall under the CFPB's §1025 authority will be made based on the June 30, 2011 Call Report data. 

After initially identifying which institutions fall under the CFPB's §1025 authority, future determination of whether an institution surpasses the $10 billion asset threshold, or conversely, falls below the threshold, will be based on four consecutive Call Reports.  Any institution reporting greater than $10 billion in its quarterly Call Report for four consecutive quarters will come within the CFPB's §1025 authority.  Likewise, an institution will no longer be primarily examined and regulated by the CFPB if it reports less than $10 billion on four consecutive Call Reports.

In the case of merger where the continuing institution exceeds $10 billion in assets, the combined assets of the separate entities will be reviewed for the four quarters preceding the merger to determine in the new entity should be immediately under  the CFPB's jurisdiction.