Saying that credit unions and small banks “had very little,really nothing to do with causing the financial crisis,'' ConsumerFinancial Protection Bureau Director Richard Cordray on Tuesdayrenewed his commitment to ensure that they don't face unnecessaryadditional regulatory burdens.

He told the Senate Banking Committee that credit unions andcommunity banks are successful business models and are theinstitutions that are most responsive to the needs of consumers andthat his bureau wants to ensure that its regulations toprotect consumers don't hurt them.

He said the CFPB would create advisory panels of credit unionsand community banks to provide input before the agency issuesproposed rules.

Sen. Jerry Moran (R-Kan.) said other regulators have suchpanels, and community banks “still feel they aremisunderstood.''

Banking Committee Chairman Tim Johnson (D-S.D.) praised thebureau's “outreach to stakeholders '' in the rulemakingprocess.

But Sen. Richard Shelby, the panel's top Republican, said thebureau hasn't sought enough public input and has “displayed apropensity to use technicalities to do what you want.''

Cordray responded to Shelby's criticism that the agency didn'tcreate bank and credit union advisory panels before issuing itsmost recent rule on remittancesby explaining that the rule-writing process wasstarted by the Federal Reserve and the CFPB took it over when itbegan operating last summer

In response to another question from Shelby (R-Ala.), Cordraysaid his bureau frequently consults with the other bankingregulators and the CFPB will make a concerted effort toensure that its regulations protect consumers while notjeopardizing the safety and soundness of financialinstitutions.

Cordray will have responsibility for protecting the safety andsoundness of banks as a result of his membership on the FDICBoard.

Sen. Mike Johanns (R-Neb.) said he has doubts that the actionsthat the CFPB takes during Cordray's

tenure will be considered valid because of the constitutionallyquestionable nature of President Obama's recess appointment of Cordray earlier this month.

Cordray said he believed the appointment was constitutionallyvalid and he would perform the legal responsibilities he isrequired to.

The tone of the questioning was generally friendlier on theDemocrat-controlled committee than it was during a similar hearing last week by a House panel, controlled byRepublicans.