WASHINGTON (6/6/14)--Mirroring an action the National Credit Union Administration took at its May 22 open board meeting, federal bank regulators this week launched a mandated effort to gain industry opinion about which rules should be studied for possible elimination.
The review is required of federal financial institution regulators by a 1996 law. The Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) makes regulators identify outdated, unneeded or unnecessarily burdensome rules every 10 years.
The banking regulators issued a joint release Wednesday, saying "the EGRPRA review may facilitate the identification of statutes and regulations that share similar goals or complementary methods where one or more agencies could eliminate overlapping requirements.
"Alternatively, commenters may identify regulations or statutes that impose requirements that are no longer consistent with the way that business is conducted and that, therefore, the agencies might eliminate." The release is from the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp.
In May, the NCUA announced they would publish 10 categories of regulations for public comment over the next two years--under the EGRPA rules. The first set of comments is due by Sept. 2, and covers "Applications and Reporting" and "Powers and Activities."
The NCUA is interested in comments regarding the need and purpose of the regulations, need for statutory change, overarching approaches and flexibility of the regulatory standards, and effect on competition.
The federal financial institution regulators will jointly publish three additional Federal Register notices for public comment at regular intervals over the next two years. Each notice will address at least one category of the regulations.
The NCUA also reviews one-third of its body of rules every year, so every rule is reviewed for updates or elimination every three years.