Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Yin Wilczek
July 22 — Growing regulatory requirements are taking a toll on bank products and services, according to a new survey.
Almost half—46.3 percent—of bank compliance officers recently polled by the American Bankers Association (ABA) said their institutions reduced offerings for loan accounts, deposit accounts or other services because of regulatory compliance burdens.
This was an increase compared to 2011 and 2013, and a substantial jump compared to the 21.9 percent who indicated in 2009 that their banks cut services or products because of regulatory burdens, the ABA said in a July 20 release.
In addition, almost 46 percent of the respondents said their banks decided not to launch a product or enter a new market because they were unsure of the regulatory impact.
Four hundred and fifty-seven bank compliance officers responded to the ABA's biennial web-based survey, which was conducted from February to March.
Among other regulatory burdens, the ABA release cited the ability-to-pay rule as one regulation that has led to a decrease in bank services, observing that it caused one-third of banks to reject “otherwise creditworthy mortgage borrowers.”
The Consumer Financial Protection Bureau rule took effect in January 2014 and requires banks to consider consumers' ability to repay home loans before extending them credit.
In other findings, more than 55 percent of the respondents said their compliance budgets have grown since 2013, mostly due to staff increases and handling more regulations. Almost half of the respondents also said their banks have outsourced at least one compliance function.
Of those, 76.9 percent of the respondents indicated that their banks outsourced the compliance audit function while 46.3 percent said they outsourced fair lending reviews.
To contact the reporter on this story: Yin Wilczek in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
A summary of the survey results is available at http://www.aba.com/Pages/default.aspx.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)