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CSBS: Community banks pay more for compliance 


November 17, 2025 / By ICBA

The Conference of State Bank Supervisors published data showing banking regulation is more burdensome on community banks. 

Details: Based on 10 years of data from its Annual Survey of Community Banks, CSBS said: 

  • Smaller banks reported spending 11%-15.5% of their payroll on compliance tasks, compared with 6% to 10% at the largest institutions. 

  • Data-processing costs consume 16.5%-22% of small banks’ budgets versus 10%-14% for larger banks. 

  • Consulting costs diverged the most, at roughly 50%-64% for the smallest banks compared to 19%-30% for the biggest. 

ICBA View: Securing regulatory relief for community banks is a key priority of ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress.  

2025 Successes: In a blog post earlier this year, ICBA President and CEO Rebeca Romero Rainey breaks down numerous community bank regulatory relief successes achieved through the first half of 2025. 

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