Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Banking Industry Foresees Increased Regulatory Burden

Matthew Blair • 5/14/2021
Working from the premise that the incoming Biden Administration could spur uncertainty regarding regulatory activities in banking, Cushman & Wakefield launched its inaugural Banking Pulse Check survey to seek the perspective of banking industry front-line regulatory and risk professionals.

Banking-Quarterly-Pulse-Survey-Banner

Perhaps the most telling result from our survey is that 95% of respondents expect an increase in regulatory burden for their institution over the next 18 months.  Thirty percent expect the increase in regulatory burden to be large, while 65% predict it will be moderate. We believe these results track with general industry expectations as tougher regulatory enforcement was certainly present in the Obama Administration.    

When asking our respondents to rank order their priority regulatory issues from highest to lowest priority, the clear highest priority is AML / BSA.  Closely following were PPP / Stimulus programs, LIBOR Transition and Consumer Lending (HMDA, CFPB, Student Loans, etc.). The AML response appears to be in line with Requests for Information (RFIs) issued in April 2021 by federal agencies (OCC, FED, FDIC, FinCEN) seeking comments on regulatory approaches to AML / BSA and OFAC compliance. Results should be published later in the year.  

Our final question asked about planned regulatory staffing changes. More than 42% of respondents expect an increase in full time staff.  However, 33% of respondents do not expect staffing levels to change, and no respondents anticipated a reduction in regulatory staff.  An increase in staffing needs partnered with the challenges of returning to the office following the pandemic will be interesting to monitor throughout the year.  

Participation in the survey represented a spectrum of banking professionals, from Chief Risk Officers to Front Line Risk professionals.  The largest respondent groups were: 

  • Regulatory / Compliance Professionals -- 29%  
  • Commercial / Consumer Bankers -- 24% 
  • Operations / Internal Services – 9.5% 
  • Internal Auditors both accounting 9.5% 

We thank our respondents for their participation and look forward to future engagement from the banking industry as we send out our Cushman & Wakefield Quarterly Banking Pulse Check.  

Cushman & Wakefield’s Banking & Regulatory Solutions provide large teams of credit-trained professionals to assist major banks in remediating issues cited by regulators.  Our teams dive into bank files and bank systems to fix problems that otherwise may lead to regulatory fines. Learn more about how our depth of experience brings the most experienced and cost-effective remediation & due-diligence team in the market. 

Other firms analyze problems, our firm fixes them. 

Related Insights

Global investment bank
Article • Valuation

LIBOR’s End is Going to be Messy

Banks continue to write contracts tied to LIBOR and will most likely continue to do so until they are required to stop.
Matthew Blair • 2/25/2021
Women Calculating With Calculator And Laptop
Article • Valuation

The Ever-Changing Landscape of LIHTC & CRA: Tax Cuts

This is part 1 in our series on Low-Income Housing Tax Credit Investments (LIHTC) and the Community Reinvestment Act (CRA).
3/24/2020

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS