Washington, D.C (Feb. 27, 2018)—Independent Community Bankers of America® President and CEO Camden R. Fine issued the following statement on today’s Government Accountability Office report on community bank regulatory burdens.
“ICBA and the nation’s community banks appreciate the Government Accountability Office’s attention to the massive regulatory burdens harming community banks. Today’s report supports what community banks have long said: that ever-increasing federal regulations increase compliance costs and reduce credit availability in local communities.
“In particular, today’s report identified three of the most burdensome sources of regulation: data-reporting requirements under the Home Mortgage Disclosure Act, transaction reporting and customer due diligence requirements under the Bank Secrecy Act and anti-money-laundering laws, and the TILA-RESPA Integrated Disclosure regulations. Notably, regulators largely agreed that these regulations are burdensome and said they are looking for ways to reduce the burden, according to the report.
“The GAO also cites flaws in the decennial regulatory reviews required by the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The report notes that these EGRPRA reviews are limited by not including Consumer Financial Protection Bureau regulations, not requiring bank regulators to provide quantitative rationales for their responses to comments, and—against congressional intent—not assessing the cumulative regulatory burden. As a result, EGRPRA reviews have had a limited impact on the rising regulatory burden.
“The GAO’s 10 recommendations for executive action—such as assessing the effectiveness of guidance and developing plans for quantitative analysis of regulatory reviews—would support the efforts of ICBA and community banks to establish tiered and proportionate regulations. But the best way for Washington to start implementing meaningful relief is for Congress to pass the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) as quickly as possible. This robust package of community bank regulatory relief measures would provide substantive relief that will strengthen economic growth, job creation, and consumer protection.”
The Independent Community Bankers of America®, the nation’s voice for nearly 5,700 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.