Community bankers reject the conclusions of a Government Accountability Office report that say regulatory burdens only had a “modest effect” on the declining number of banks since 2010.
Regulators will continue to issue guidance to articulate general views on appropriate practices, but they will not issue enforcement actions based on violations.
It is critical that banks blend data science and their industry knowledge to better identify and mitigate compliance risk, says one director at Promontory Financial Group.
Comptroller of the Currency Joseph Otting writes that the Community Reinvestment Act has not kept pace with changes in banking and needs to be updated.
The Office of the Comptroller of the Currency issued more than 30 questions for the public as it begins an effort to modernize the Community Reinvestment Act.
Unilateral approaches to bank regulation are risky, but the OCC's plan to seek public comment independent of the other agencies could help shed light on a CRA debate that is now being waged internally.
The service can be useful for customers short on cash, but financial institutions need to clarify overdraft rules and develop alternative forms of credit.
