Category Archives:EGRPRA

Remarks Before EGRPRA Meeting

On Tuesday, August 4, 2015, in Kansas City, Mo., the Office of the Comptroller of the Currency(OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) held the fourth in a series of outreach meetings as part of the interagency effort to reduce regulatory burden as required by the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). The outreach meetings provides interested parties an opportunity to comment on regulatory burden reduction directly to the agencies’ staff members and senior management.

During the outreach meeting in Kansas the FDIC Vice Chairman, Thomas M. Hoenig, said well-capitalized banks that stick to traditional banking should be eligible for exemption from some regulations. Hoenig stated, “I think it is fair to say there is broad agreement that the regulatory burden should be eased for community banks. However, what is proving more difficult is finding agreement on what exactly defines a traditional bank and what specific regulatory changes would give such banks meaningful relief without compromising bank soundness or consumer protections.” Further, he stated “regulators should use discretion when examining for compliance with regulations that clearly have little to do with the bank being examined….the public needs commercial banks to provide credit to small businesses and consumers across the country without the burdensome constraints of misdirected regulation.”

Read Hoenig’s remarks

FDIC's Advisory Committee on Community Banking Scheduled to Meet

The Federal Deposit Insurance Corporation (FDIC) has announced that its Advisory Committee on Community Banking will meet on Friday, July 10. Staff will provide an update on a number of issues, including examination frequency and offsite monitoring; call report streamlining; the cybersecurity assessment tool; and recent rulemakings. There also will be discussions about high volatility commercial real estate loans and review of banking regulations under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA).

The meeting is open to the public and will be held from 9:00 a.m. to 3:00 p.m. EDT in the FDIC Board Room on the sixth floor of FDIC headquarters located at 550 17th Street, NW, Washington, D.C. The meeting also will be webcast live. The agenda for the meeting and a link to the webcast are available at https://www.fdic.gov/communitybanking/2015/2015-07-10_agenda.html.

Remarks from EGRPRA Meeting in Boston

On May 4, OCC Comptroller Thomas J. Curry delivered remarks at the third outreach meeting held under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) in Boston. In his remarks the Comptroller acknowledged that smaller banks and thrifts don’t have the same kind of resources that large institutions can bring to bear on regulatory compliance, and noted that if they could eliminate unnecessary rules and streamline others, it would make it easier for these smaller institutions to serve the economic needs of their communities. With this in mind, it is expected that a fourth outreach meeting will be announced later this year focused solely on rural banks, which face their own unique challenges.

Curry noted that the agency continuing to work with Congress and the FFIEC to remove the outdated and onerous regulatory requirements currently imposed on these institutions: “If it is clear that a regulation is unduly burdensome, and if we have the authority to make changes to eliminate that burden, we will act.” Currently, the agency has presented lawmakers with three specific proposals to remove regulatory burden on smaller banks: (i) raise the asset threshold from $500 million to $750 million so that a greater number of community banks qualify for the 18-month examination cycle; (ii) provide a community bank exemption from the Volcker Rule; and (iii) provide greater flexibility to federal savings associations to change and expand their business strategies without changing their governance structure. Curry further stated, “I think these legislative proposals are meaningful steps which could help a great number of smaller institutions. But we shouldn’t stop there. We should be looking at every approach that might help community banks thrive in the modern financial world.”

In addition Curry noted the success of collaborative ventures between banks.”There are opportunities to save money by collaborating on accounting, clerical support, data processing, employee benefit planning, health insurance – and the list goes on.”

EGRPRA Outreach Meeting

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (the Agencies) are holding a series of outreach meetings to review their regulations under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA).The first meeting was held in Los Angeles in December of 2014. The second Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) Outreach Meeting was held at the Dallas Fed on February 4, 2015. The purpose was to receive information on regulatory burden. The agenda was stacked with well known community bankers and community development entities. Kennedy Sutherland LLP attended the meeting and made brief remarks and provided a additional comments for review. As of the hearing, only 44 comments had been filed regarding the regulations under the EGRPRA. The next outreach meeting will be held at the Federal Reserve Bank of Boston on May 4, 2015.