Latest Banking Agency Review Demands Meaningful Impact on Expanding Regulatory Burdens

Read the Independent Banker article here.

Here is a brief summary:

• Regulatory Burden Increase: Recent months have seen an acceleration in the enactment of new regulatory burdens on community banks, spurred by the risky practices of large institutions.
• Excessive Regulation: Since July, regulators have introduced 7,000 pages of new rules, significantly impacting community banks.
• Ineffective Supervision: Regulatory agencies often fail to apply common sense in their supervision, leading to unnecessary complexity and burdens.
• Historical Issues: Past failures in oversight, such as during the 2012 mortgage settlement, highlight systemic problems in detecting and addressing risky practices.
• Misplaced Focus: Examiners frequently focus on minutiae rather than the overall safety and soundness of banks.
• Recent Examples: The FDIC’s 200-page proposal on incentive-based compensation, justified by practices at Wells Fargo, exemplifies the one-size-fits-all approach that disregards the scale of smaller banks.
• Call for Action: The ICBA urges regulators to undertake a meaningful review of regulations, considering the unique community banking model, and to involve independent consultants for a thorough evaluation.