TLDR:
- Federal banking regulators have issued a request for comment on aspects of the bank regulatory apparatus, as part of a decennial review mandated by the Economic Growth and Regulatory Paperwork Reduction Act of 1996.
- The initial request for comment focuses on three categories of regulation: Applications and Reporting, Powers and Activities, and International Operations.
- The agencies are accepting public comment on ways to improve these areas of regulation for 90 days.
The Federal Reserve, Federal Deposit Insurance Corp. (FDIC), and Office of the Comptroller of the Currency (OCC) have initiated a regulatory lookback process by issuing a request for comment on various aspects of the bank regulatory apparatus. This is part of a decennial review required under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). The initial request for comment will concentrate on three categories of regulation: Applications and Reporting, Powers and Activities, and International Operations. For a period of 90 days after their publication in the Federal Register, the agencies will accept public comment on ways to improve these areas of regulation.
During this process, the agencies plan to conduct public outreach events to engage stakeholders and interested parties. Federal Reserve Governor Michelle Bowman has expressed particular interest in hearing from community banks about how Fed rules impact small institutions. She hopes that this review will provide a meaningful process for stakeholders and the public to identify unnecessary or burdensome regulations. Bowman also wants to gain insights into the aggregate burden imposed on community banks since the previous EGRPRA review 10 years ago:
“As a part of the comment solicitation process, I would also appreciate hearing from the public, particularly from community banks, about the aggregate burden that has been imposed since the prior EGRPRA report 10 years ago.” – Michelle Bowman, Federal Reserve Governor.
Regulators will continue the review by requesting comment on the regulations in the remaining categories over the next two years. The goal is to identify regulations that are outdated, unnecessary, or unduly burdensome. Banks have previously criticized the EGRPRA review process, claiming it does not lead to meaningful changes in the regulatory regime despite detailed and substantive comments being submitted.
