RMA Community Bank Regulatory Survey Addresses Concerns of Regulatory Agencies

Philadelphia, PA (May 8, 2018) —

The Risk Management Association recently conducted its community bank regulatory survey which identified the trends and issues in risk management affecting community banks. The purpose of the survey, which generated responses from both RMA members (90%) and nonmembers (10%), was to deliver insight and add value to discussions with regulators and RMA Community Bank Council members. The survey focused on six categories, including enterprise risk management; compliance; examinations; CECL; lending and service products; and the regulatory environment.

Among other findings, it was learned that:

  • Cybersecurity (69%) posed the greatest risk management challenge, followed by credit risk (61%) and IT (60%).
  • Approximately 53% of the banks indicated that residential mortgage regulations are confusing or difficult to implement, while 52% responded that they feel the same way about HMDA data collection rules.
  • With regard to regulatory examinations, 53% of banks were last examined by the FDIC and, of that number, 76% reported that the FDIC provided a fair assessment of their institution, while 32% indicated the agency did not clear citings until the next exam period.
  • Approximately 48% of the banks indicated that they are in the early stages of gathering data for CECL, while only 3% of respondents are ready for implementation.
  • With regard to lending and service products, 80% of banks reported plans for increased lending most frequently in C&I; 70% in owner-occupied CRE; and 67% in small business lending.

About RMA
Founded in 1914, The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk management principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has 2,500 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the Association by 18,000 individuals located throughout North America, Europe, Australia and Asia/Pacific.

Media Contacts
Stephen Krasowski, skrasowski@rmahq.org, 215-446-4095
Frank Devlin, fdevlin@rmahq.org, 215-446-4137