In an effort to collect and evaluate information on the benefits, costs, and impacts of regulation, the CFPB conducted a study measuring the financial impact of deposit regulations on 7 banks. Expenditures were broken into subcategories: operations, information technology, human resources, compliance and retail. The study found that banks with less than $1 billion assets had the highest cost as a percentage of operating expense.
The regulatory burdens the CFPB found to “contribute the most costs” at participating banks were authorization rights, error resolution, disclosures and advertising standards, due to requirements for cross-department coordination, intensive customer engagement and strict timetables.
Read the report.