ICBA Pursues Call Report Reg Relief
The Independent Community Bankers of America released a petition on Monday in an effort to obtain regulatory relief from burdensome quarterly call reporting requirements.
“The call report is one piece of the overall regulatory tsunami that needs to be addressed before community banks are swept off the face of America’s banking landscape,” ICBA Senior Executive Vice President and Chief of Staff Terry J. Jorde said. “With 80 pages of forms to complete, more than 670 pages of instructions and another 57 pages recently proposed to implement the provisions of Basel III, the quarterly call report is reflective of the growing regulatory red tape strangling community banks.”
In the 2014 ICBA Community Bank Call Report Burden Survey, hundreds of community banks across the country said the call reporting requirements have required a great deal of expenses and resources for compliance. The results prompted the ICBA to seek signatures for the petition focused on the complexity of existing call report requirements.
“[The] ICBA’s petition cites data from the call report survey, which found that the annual cost of preparing the call report has increased for 86% of respondents over the past 10 years and that community banks are spending hundreds of hours and thousands of dollars each year to comply,” said an ICBA press release Monday.
The ICBA has called for modified rules that would streamline the call reporting process by allowing “highly rated, well-capitalized community banks” to file a call report in short form twice annually, for the first and third quarters of the year.
“This streamlined report would provide sufficient information for regulators to monitor safety and soundness while being significantly less burdensome to prepare, allowing community banks to focus more resources on their customers and communities,” the ICBA said.
John Magill, EVP of government affairs at CUNA, said his trade group supports reforming call report requirements for credit unions.
“With regard to call reports, CUNA is a strong proponent of improvements that will streamline the process. We also support targeted modifications in call reports that could help reduce the need for additional regulations,” Magill said.
“On the subject of our involvement in regulatory relief: We work day in and day out to fight the undue regulatory burden imposed on credit unions. This Congress alone, and specifically with respect to regulatory relief, CUNA has been actively involved with 39 regulatory relief bills, and testified in front of Congress nine times,” he added.
Mary Dunn, CUNA SVP & deputy general counsel, said the trade group is examining the issue after hearing some complaints at the NCUA’s Listening Sessions this summer.
A credit union executive asked NCUA Board Chairman Debbie Matz at the Listening Session in Chicago if the agency could implement a call report filing grace period for smaller credit unions.
“We don't just automatically access civil money penalties,” Matz said of the process the NCUA follows when a credit union misses the deadline. “First we go to the regions and have them find out if there was an extenuating circumstance.”
Matz said an example of an extenuating circumstance resulting in a missed deadline would be a flood or electrical problem.