WASHINGTON, D.C.
Comptroller of the Currency John C. Dugan applauded the work of independent
banks and said America needs community institutions that are strong enough to
help out in times of emergency, but also there in ordinary times to help people
achieve their lives' dreams.
In a taped speech to
the annual convention of the Independent Community Banks of America, Mr. Dugan
said that independent banks are at the heart of the OCCs mission, noting that
90 percent of the institutions supervised by the agency have less than $1
billion in assets.
The Comptroller added
that it is vital that regulators strike a balance that preserves safety and
soundness without sapping the industrys strength.
Sensible regulation is
essential to the industrys safety and soundness, he said. But we have to be
careful that the sheer volume of our regulations doesnt overwhelm you,
stifling initiative and chipping away at your ability to compete. Preserving that balance is a challenge I
take very seriously.
The Comptroller said
one way to preserve that balance is to be clear and consistent about the
agencys expectations. In that regard,
the new uniform Bank Secrecy Act exam procedures are a major step forward.
Mr. Dugan said
creativity is also necessary in achieving regulatory balance.
Can we scale back some
regulations to reflect the relative risks posed by community banks and the
resources available to them? he asked.
Im thinking now of the approach we took in the new CRA regulations,
with its new class of intermediate small banks and significantly reduced data
collection and reporting requirements.
This could be an example with more widespread application, and Id like
to see more of it.
The Comptroller was in
Switzerland today to attend a Basel Committee meeting on the proposed capital
framework, but spoke to the convention through a taped presentation.
The full text of the
speech is available online at http://www.occ.gov/ftp/release/2006-28a.pdf. The video can also be viewed online at
http://www.occ.gov/dugan_icba_2006.htm.
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.