Dodd-Frank: consumer protection regulator to increase retail op risk exposure

Capitol Hill

The future US Consumer Financial Protection Bureau could result in an operational risk focus for US retail banks and lenders, as they face toughening compliance requirements when selling retail financial products. The planned regulatory body forms a central pillar of the Dodd-Frank Wall Street Reform and Consumer Protection Act passed by the US Congress on July 15, which is aimed at shielding consumers from the perceived abuses in retail credit that led to the financial crisis. US banks could