regulation-reform

Instead of trying to stop companies from offering payday loans and check cashing services to lower-income households, we should encourage more competitors Â-- including banks Â-- to enter this space.

The Volcker Rule's data-intensive requirements are creating headaches for banks that still rely on manual processes and use multiple, disparate systems for securities and different derivatives trading.

The Community Reinvestment Act is often used as a tool to address a broad range of social problems. But the lawÂ's expanded purpose may distract banks from their primary mission of direct lending to low- and moderate-income communities.

Many have predicted that banks will be unwilling to accept the additional risks associated with non-QM lending. But a recent survey suggests that some lenders are dipping their toes into the waters.

As the CFPB focuses on the screening processes that banks use to vet checking account applications, regulators should try to maintain a balance between safety and soundness concerns and consumer protection.