The American Bankers Association in a letter last week outlined several “big picture” recommendations for banking agencies as they conduct a congressionally mandated review of bank regulations. The Economic Growth and Regulatory Paperwork Reduction Act, or EGRPRA, requires the Federal Financial Institutions Examination Council and bank regulators to review their regulations every 10 years to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions. The agencies will conduct the review over the next two years, starting by examining regulations regarding applications and reporting, powers and activities, and international operations.
In its letter, ABA said that the current regulatory burden on banks harms the institutions and their customers. The association also said the cost of compliance for banks has grown since the last EGRPRA review a decade ago, with the 2015 enactment of the Dodd-Frank Act alone accounting for more than $32 billion in compliance costs. ABA urged regulators to remove unnecessary regulatory burdens. It also urged agencies to simplify Call Report requirements, saying the amount of information banks must report has become overwhelming for the institutions to collect.
“Over the next two years, ABA looks forward to working with the agencies to find ways to reduce regulatory burden consistent with the shared goal of ensuring bank operations are conducted in a safe and sound manner while enhancing the ability of banks to serve their customers,” ABA said.
