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. 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.
Curry also encouraged Congress to make three legislative changes: allowing banks with up to $750 million in assets to qualify for an 18-month exam cycle, exempt all banks with under $10 billion in assets from the Volcker Rule and authorizing greater charter flexibility for thrifts.
At the event, Federal Reserve Governor Lael Brainard echoed Curry’s comments on regulatory burden, noting the importance of “tailor[ing] rules whenever possible to clearly differentiate expectations for different portfolios of banks and reduce undue burden on community banks.”
Read Curry’s speech.
Read Brainard’s speech.
View ABA resources on EGRPRA.