Only if a credit union or other financial institution has assets of more than $10 billion as of this past June 30 are they subject to direct supervision of the Consumer Financial Protection Bureau, according to a supervisory statement issued Thursday by the NCUA and four other agencies.
Financial institutions that were smaller than that on June 30 would have to report assets of more than $10 billion for at least four quarters before they are subject to supervision by the CFPB.
By contrast, if an institution’s assets decline to $10 billion or less for four consecutive quarters the CFPB no longer has direct supervisory authority over it, the statement said.
In the case of an acquisition or merger, the agencies will review the assets of combined entities and then make a determination.
The CFPB was created by the Dodd-Frank financial overhaul bill and lobbyists for credit unions and other financial services providers fought for the $10 billion threshold.
Financial institutions that have assets of $10 billion or less are subject to the CFPB’s regulations but the enforcement is done by the safety and soundness regulator, such as the NCUA.
Three credit unions, the $46 billion Navy FCU, $15 billion Pentagon FCU and $23 billion North Carolina’s State Employees’ Credit Union are subject to direct supervision by the CFPB.
The statement was issued by the NCUA, the Federal Reserve, the FDIC, the Office of the Comptroller of the Currency and the CFPB.
The full statement is available online.