On March 21, member agencies of the Federal Financial Institutions Examination Council (FFIEC) announced the release of their Joint Report to Congress: Economic Growth and Regulatory Paperwork Reduction Act (the Report), which details their review of rules affecting financial institutions and the effect of regulations on smaller institutions. The review—required by the Economic Growth and Regulatory Paperwork Reduction Act to be conducted at least once every ten years—included the participation of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, and included the consideration of more than 230 written and 130 oral comments from financial institutions, trade associations, and consumer and community groups, as well as numerous comments obtained at outreach meetings.
The members of the FFIEC described several joint initiatives, including actions taken to:
- Simplify regulatory capital rules for community banks and savings associations;
- Streamline reports of condition and income (Call Reports);
- Increase the appraisal threshold for commercial real estate loans; and
- Expand the number of institutions eligible for less frequent examination cycles.
In addition, the Report also described actions taken by each agency to “update rules, eliminate unnecessary requirements, and streamline supervisory procedures.”