WBK Industry News - State Regulatory Developments

CSBS Releases State Examination System Nationwide

The Conference of State Bank Supervisors (CSBS) recently announced the nationwide release of the State Examination System (SES).  The CSBS noted that “[t]hrough SES, state regulators will be able to enhance supervisory oversight of nonbanks while making the process more efficient for regulators and companies.”  The State Regulatory Registry (SRR), a CSBS subsidiary, developed and operates SES. 

The CSBS stated that SES was built, in part, to facilitate collaboration between licensees and state regulators.  It will also help examiners identify and focus on higher-risk cases.  SRR Chairman John Ducrest explained at the 2020 NMLS Annual Conference that, up until recently, SES was in a beta stage, with seven participating states using SES for mortgage and money transmission examinations.  He noted that SES will now be available “to every state regulatory department in the country” and, so far, more than 30 states have committed to using it.