ICBA continues call for 1033 exemption in new article

The Consumer Financial Protection Bureau should exempt banks with less than $850 million in assets from its pending rule on sharing consumer financial data, ICBA told American Banker.

Details: In a new article on the CFPB’s rule to implement Section 1033 of the Dodd-Frank Act, ICBA’s Mickey Marshall reiterated its call for the CFPB to exempt community banks under the $850 million threshold—which the Small Business Administration uses to define small businesses—from a provision requiring institutions to create and maintain a third-party developer interface.

Implementation Cost: "Community banks will largely be dependent on their core processors or other third-party companies to create the technologies required to allow them to build and maintain developer portals to comply with this rule, limiting their ability to control or mitigate the cost of implementation,” Marshall said.

Background: Section 1033 requires covered financial institutions to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts. The CFPB’s 1033 proposed rule issued last fall would require virtually every bank in the country to establish and maintain a “developer portal” that third-party companies could use to access consumer data with consumer authorization.

ICBA Advocacy: In April, community bankers and staff from ICBA and Independent Bankers Association of Texas met with CFPB officials to express concerns with the 1033 rule. In its December comment letter on the proposal, ICBA urged the bureau to exempt certain community banks from the proposed standards and to permit banks to charge third parties a reasonable fee for providing access to consumer information.