OCC Works to Decrease Regulatory Burden on National Banks, FSAs

The Office of the Comptroller of the Currency (OCC) took steps toward reducing the regulatory burden placed on community national banks and federal savings associations (FSAs) by participating in an outreach meeting as part of the Economic Growth and Paperwork Reduction Act (EGRPRA) on Monday.

Thomas J. Curry, comptroller of the currency, led discussions at the meeting, which is the third in a series of meetings under the EGRPRA.

According to Curry, the OCC is working on an interagency basis and with the Federal Financial Institutions Examination Council (FFIEC) to make regulatory compliance easier for FSAs and national banks – particularly those on the smaller side.

“Smaller banks and thrifts don’t have the same kind of resources that large institutions can bring to bear on regulatory compliance,” Curry said, “and if we can eliminate unnecessary rules and streamline others, we can make it easier for these institutions to serve the economic needs of their communities.”

Curry even said there would be an outreach meeting the future that would specifically focus on rural banks, which he said have “their own unique challenges.”

In his speech, Curry recognized that regulations are, by nature, burdensome, but he said it’s the ever-increasing regulatory chances that have him concerned.

“What worries me is the way that the regulatory rulebook builds up over time, adding layer after layer of requirements that can be quite onerous for small banks,” Curry said. “So we at the OCC are taking this process very seriously.”

After Curry’s introduction panelists and audience members were allowed to ask questions and voice concerns about regulatory compliance. They could also submit ideas for improving or bettering the process.

“We will consider carefully all of the comments received today,” Curry said, “and a summary will be published on the regulations.gov Web site and included in our report to Congress.”

So far, the OCC has submitted three proposals to Congress that aim to eliminate regulatory burden. The first would change the asset threshold to allow more institutions a longer, 18-month examination cycle. The second proposes that community banks be exempt from the Volcker Rule, while the third would provide FSAs an opportunity expand their business model to better meet the needs of the community.

But as to when these proposals--or any regulatory reform, for that matter—would go into effect, Curry said it could be a while.

“While this process will unfold over some time, I can assure you that we at the OCC will not wait until it is over to make changes when a solid case has been made for reform,” Curry said. “If it is clear that a regulation is unduly burdensome, and if we have authority to make changes to eliminate that burden, we will act. However, many regulatory requirements are rooted in laws passed by Congress, and changes may require legislative action. In those cases, we will work with Congress to remove unnecessary burdens.”

See all of Curry’s comments at OCC.gov