community banking sector

Regulatory burden continues to weigh heavily upon the community banking sector in terms of mega doses of time, financial resources, increasing levels of frustration and inefficient efforts that do not benefit the customer (try explaining Reg Z to a customer in addition to the landslide of paper that it now takes to 'disclose'!). It is being used as leverage by the regulators to accomplish their own agendas (just look at CRA!). And now we are all awaiting the newest addition to the quagmire...financial reform 2010 - the way they are adding amendments this may look like the healthcare bill before it is all said and done!

prb

From: "BBW Capital"
Subject: BBW Capital Weekly Market Monitor
Date: Mon, 17 May 2010 18:09:09 -0600

As the riots rage in Greece, and protesters gather in the streets of Spain and elsewhere to rally against financial responsibility, community bankers here in America ought to be girding for a battle of their own. Lest anyone be confused about Market Monitor’s concern over our government’s position vis-à-vis small business and small banks, let’s be clear that we are in the obsessively paranoid camp, with plenty of cause. A front page article last week in the American Banker repeated one of the many reasons for that paranoia: rising fixed costs of regulation. One industry advisor was quoted as
saying “I think the regulators are less likely today to let small banks off the hook with all the regulations, and the costs are just becoming too enormous to bear.”
Another, noting the high number of banks per capita in the United States versus other industrialized countries, correctly points out that “It’s great for the consumer, great for the businessman…” before finishing the sentence with a moronic thought that is probably, sadly, representative of Beltway thinking these days, “…but as an economic system, I’m not sure I think that’s entirely healthy.” Brace yourselves.