LOS ANGELES (12/4/14)--The elimination of unnecessary or outdated regulations can make life easier for small financial institutions, Comptroller of the Currency Thomas Curry told an audience this week.
Speaking at an interagency outreach meeting on the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), Curry said that each rule that can be eliminated means these institutions will better be able to serve their members.
"What worries me is the way that the regulatory rulebook builds up over time, adding layer after layer of requirements that can be quite onerous," he said, adding that public comments from all stakeholders are welcome throughout the process.
The EGRPRA is intended to identify unnecessary, outdated or overly burdensome regulations. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corp., Federal Reserve Board of Governors and Federal Financial Institutions Examination Council review their regulations annually.
The National Credit Union Administration board is not required to participate but voluntarily does so. The agency says it is working with other regulators on an EGRPRA report that is likely to be delivered to Congress sometime in 2016.
The Credit Union National Association filed a detailed letter and is developing a set of additional recommendations for NCUA and other agencies to achieve regulatory relief for credit unions.
Curry said that the OCC will not necessarily wait until the review process is complete before making changes.
"If it is clear that a regulation is unduly burdensome, and if we have authority to make changes to eliminate that burden, we will act," he said. "Many regulatory requirements are rooted in laws passed by Congress, though, and changes may require legislative action. In those cases, we will work with Congress to remove unnecessary burdens."