Credit union and bank officials are less anxious about their risk and compliance obligations than they were a year ago, Wolters Kluwer said in its annual Regulatory and Risk Management Indicator Survey.
With 582 responses, the survey generated a Main Indicator Score of 85 out of a possible 200. That represents an 18% drop from the level a year ago.
"While we see a reduction in the Main Indicator Score, more than 60% of respondents continue to rate their compliance concerns as a '7 or higher' on a 10-point scale," Timothy Burniston, senior advisor for regulatory strategy at Wolters Kluwer Compliance Solutions said.
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The calculation of the Main Indicator Score is based on several factors, including new regulations, number of enforcement actions and the total amount of fines imposed on banks and credit unions during the past year.
Burniston said he believed the overall indicator dropped, in part, because of a drop in new federal regulations compared to the prior year.
However, 62% of those surveyed said that despite the enactment of the regulatory overhaul bill during the current Congress, they did not expect a drop in regulatory burden.
The survey also found that:
- 78% of the respondents said that they are most likely to make moderate to high investments in updating policies and procedures during the next year.
- 73% of the respondents reported being very or somewhat concerned about complying with the Current Expected Credit Loss (CECL) standard.
- 61% said they were very or somewhat concerned about fair lending issues.
- 44% said they have inadequate staffing for compliance issues.
- 81% of the respondents said their organization will focus on cybersecurity issues during the next year.
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