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Better Equipped: Regulatory Concern Levels Decline Among Banks

investigation two BHA recent survey from Wolters Kluwer showed that banks and credit unions across the nation reported a collectively decrease in concern levels for regulations and risk, according to a recent release from the company [1]. Wolters Kluwer also says that this the first decline seen in the four years the survey has been administered.

“After years of steady increases, the diminution in anxiety levels this year is most encouraging, suggesting that banks and credit unions feel they are more effectively managing their risk and regulatory requirements despite a regulatory climate that has not eased,” said Timothy R. Burniston, EVP, U.S. Advisory Services and Regulatory Relations. “While the survey doesn’t measure why concerns have leveled off, a strong possibility is that respondents have been arming themselves with better tools, resources and programs to help navigate through the wide range of complex challenges they face.”

The survey found that in particular, the financial institutions concern on the ability to remain compliant to the ever-changing regulations decreased from the year as did concern in demonstrating compliance to regulators, concern on keeping track of changing regulations, and concern for managing risk across all lines of one’s business.

The survey also found that overall concern levels regarding new HMDA data collection requirements declined. The company’s release says that this is likely due to the fact that the content of the revised HMDA regulation has been released by the CFPB since that time.

“While these are notable, positive changes from past results, we need to interpret these findings within the larger context of overall concerns expressed by respondents in managing regulatory and risk challenges facing their organization,” Burniston said, “especially given a regulatory environment in which the number of new regulations jumped 14 percent from 2015, and a supervisory enforcement climate where the amount of fines and penalties imposed increased 56 percent.”

To view the full survey results, click HERE. [2]