Last week, the US Conference of State Bank Supervisors (CSBS) announced the launch of its Catalyst Initiative, a new effort aimed at improving the effectiveness and efficiency of supervision through the development of modern supervisory technology (SupTech).
The program will prioritize partnerships with the private sector that have the potential to reduce the cost of regulatory compliance while enhancing data quality and risk detection across the system. "The Catalyst Initiative reflects the state system’s commitment to innovation," said CSBS President and CEO Brandon Milhorn. "[N]ew supervisory technology can fundamentally change how the states help protect consumers and financial stability. These investments in new tools — made in parallel with ongoing private sector efforts — will provide better data, improved analytics, and more effective systems to quickly identify and mitigate financial risks."
In its initial phase, Catalyst will focus on two key areas. First, streamlining bank data reporting to make it less costly and more transparent. And second, piloting the use of the Mortgage Industry Standards Maintenance Organization (MISMO) mortgage compliance dataset to expedite mortgage file reviews.
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