In accordance with Section 11.002(a) and (b) of the Texas Finance Code, the Finance Commission of Texas (Commission) has developed this Strategic Plan for 2023-2027. In supporting the merits of sound strategic planning, the Commission also adopted an internal policy statement as part of its internal operating policies and procedures that requires adoption of a five-year strategic plan beginning in August 2002 and each two-year period thereafter.
The statute and policy statement are shown below:
Sec. 11.002. Purpose of Commission; Strategic Plan
(a) The finance commission is responsible for overseeing and coordinating the Texas Department of Banking, the Department of Savings and Mortgage Lending, and the Office of Consumer Credit Commissioner and serves as the primary point of accountability for ensuring that state depository and lending institutions function as a system, considering the broad scope of the financial services industry. The finance commission is the policy-making body for those finance agencies and is not a separate state agency. The finance commission shall carry out its functions in a manner that protects consumer interests, maintains a safe and sound banking system, and increases the economic prosperity of the state.
(b) The finance commission shall prepare and periodically update a strategic plan for coordination of the state financial system. Each finance agency shall cooperate in preparation of the plan.
The finance commission recognizes the benefits of sound short-term and long-term planning and the need to direct the regulatory responsibilities of each finance agency in a manner that protects the integrity of the state’s financial system along with promoting economic prosperity. In this regard, the finance commission will prepare and adopt a five-year strategic plan each biennium beginning August 1, 2002. Revisions and updates to the plan are permitted, but shall be limited to items that are material in nature that will result in significant changes to the goals and objectives of the finance commission.
On or before September of each even-numbered year, the chair of the finance commission will appoint three members to serve on a strategic planning committee that shall also consist of a nonvoting representative from each of the three finance agencies. The strategic planning committee shall be responsible for preparing or updating the strategic plan so that it encompasses the goals and objectives of the finance commission.
At a minimum, the strategic plan shall address the following:
- The current and forecasted condition of the state’s economic and financial systems considering global and national policies and influences,
- The effectiveness of regulatory statutes in providing guidelines that ensure a safe and sound banking system and financial environment for the citizens and businesses of the state,
- The condition and effectiveness of the three finance agencies in meeting their goals and objectives as stipulated in their respective strategic plans, and
- Any enhancements to the regulatory framework of the three finance agencies.
Strategic Planning Process
The three state agencies under the direction of the Finance Commission of Texas each submit separate strategic plans which include specific objectives, goals and strategies. It is not the intent of the Commission to duplicate this process. Still, the Commission is committed to the principles of establishing clearly defined objectives, goals, and strategies.
Consequently, a significant purpose of the Commission’s plan, and a goal of the strategic planning process, is to coordinate and bring together the concepts and plans of the three agencies under its supervision. Below is a general timeline of the development of the strategic plan.
- The Strategic Planning Committee of the Finance Commission meet to discuss the three agencies’ submitted plans as well as define the scope, direction, content and process for preparation of the Commission’s strategic plan.
- Staff from the three agencies meets to identify key elements for inclusion in the Commission’s plan.
- Draft Commission strategic plans are provided to the agencies for review and comment.
- Draft copies are distributed to the Commission members for comment and further direction.
- The final draft is presented to the full Commission prior to the August meeting of the Commission. Consideration of the final plan is scheduled for the August meeting.