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FDIC Chairman Announces Community Bank Initiatives

1 min read
Sep 20, 2011

FDIC Chairman Martin Gruenberg recently announced initiatives intended to help the agency better understand the challenges facing community banks'.  The agency has committed to holding a conference early next year on the future of community banking and their impact on the markets they serve.  

Studies show that community banking has changed dramatically over the last 10 years.  The cost structure and the overwhelming increase in regulatory compliance has turned the traditional business model on it's ear.  Fair lending, CRA, and HMDA compliance alone has become a multi-billion dollar a year cost for community banks.  

"The FDIC is also reviewing key challenges facing community banks such as raising capital, keeping up with technology, attracting qualified personnel, and meeting regulatory obligations," Gruenberg said. "Additionally, we are looking at our own risk-management and compliance supervision practices to see if there are ways to make the process more efficient" for community banks. Community bankers can only hope Mr. Gruenberg is good on his word. 

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