“The regulatory relief legislation passed yesterday chips away at some of the burdens banks shoulder, but it’s just the beginning of what needs to be done.  Banks are subject to a host of laws and regulations, some over a half-century old that do not enhance safety and soundness or provide any meaningful protections for the public.  Eliminating unnecessary regulations will free up resources that can be used to better serve businesses and families that rely on the banking system for loans, investments and other financial services. 

            “The bill’s extended exam cycle provision will mean fewer exams for about 1,000 small banks.  Examinations are a heavy drain on time and resources, and a longer exam cycle is welcome relief for community banks.  The joint-rulemaking authority for Regulation B will remove the legal uncertainties that have hindered banks that sell securities.  These bankers want to get on with the business of banking and take advantage of Gramm-Leach-Bliley which promised the ability to offer a wide-range of financial products and regulations without the costly restraints of outdated laws. 

            “The bank director provision continues to be a concern and we urge the regulators to use their new powers with care and precision.  Banks have a tough time attracting and keeping directors and officers, and that task would be further complicated if regulators misinterpret this provision.