CHICAGO Acting
Comptroller of the Currency Julie L. Williams said today that the OCC knows,
from its supervisory experience, about the burden of regulation shouldered by
community banks and is working in Washington to do something about it.
We know that the
resources you expend working to meet government compliance and paperwork
requirements is time and effort unavailable for you to do what you do
bestserving your customers and communities, Ms. Williams said in a speech
before an OCC Bankers Outreach Meeting.
When we hear these concerns from you, we can translate your issues into
proposals for reform.
Ms. Williams noted that
the OCCs combination of local presence; national perspective enables the
agency to add value to the solution of individual bank issues and effectively
tackle systemic issues that affect multiple national banks. By hearing about issues involving the burden
of regulation shouldered by community banks on the local level, the OCC uses
its national presence to be directly involved in the debates in Washington D.C.
about how to do something about them.
In addition, Ms.
Williams pointed out that the OCC will advocate changes to the law when
necessary, and cited the agencys efforts to reform the regime of consumer
compliance disclosures as a prime example.
Shorter, focused
consumer disclosures can meaningfully reduce your regulatory burden, Ms.
Williams said. Just think of what it
costs to prepare and deliver all those consumer disclosures that get thrown out
because your customers dont find them useful.
The time you spend on compliance matters and the money you spend on
lawyers and consultants navigating through complicated requirements could be
redirected to better serving your customers and improving returns to your
stockholders.
Ms. Williams also
addressed Basel II and important concerns of competitive equity and regulatory
burden for community and mid-size banks that will not be covered by the Basel
II capital rules. She informed the
bankers that the OCC is now engaged in a simultaneous effort to update and
revise the risk-based capital rules that will apply to the non-Basel II banks.
In that effort, we
will be very aware of the potential competitive implications of different
capital rules for different types of banks, and we also will be very sensitive
not to go overboard and create an overly complicated new set of capital rules
for the non-Basel II world, she said.
Ms. Williams pointed
out that the OCC provides community bankers value added supervision with
experienced bank examiners, expert legal and licensing specialists, and
talented community affairs officers who are available to answer their questions
and provide the best possible guidance to address their individual issues.
We have dozens of
experts in fields ranging across the banking and financial spectrumpeople who
know the banking business inside and out, people with the most advanced degrees
and certifications available, some with years of industry experience before
they came to the OCC, Ms. Williams said.
These are people who know the issues faced by banks of all types and
sizes; experts who supervise some of the largest and most complex banking
organizations in the world; experts who understand the issues and challenges
facing community bankers.
Ms. Williams concluded
by stating that the national banking system provides the legal framework that
enables national banks to compete effectively and efficiently and to evolve
their business to grow with their customers needs in todays fluid and
competitive marketplace. National banks
have the ability to develop and offer new products and services through a
variety of structures: an operating subsidiary, a financial subsidiary, a bank
service company, a joint venture, and other types of investments, as well as
through the bank directly.
We recognize that not
only will the content of business of banking evolve over time, but the means by
which that business is conducted must be permitted to evolve as well, Ms.
Williams said.
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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.