In a confirmation of what credit union executives have suspected, the cost of regulatory compliance increased drastically between 2010 and 2014, according to a CUNA-commissioned report from Cornerstone Advisors.
In 2014, the regulatory cost reached 54 basis points of assets — an increase of 15 basis points since 2010. Translated, that means that regulatory costs for credit unions were $1.7 billion more than they would have been without the changes made between 2010 and 2014 — a period that includes enactment of the Dodd-Frank Act.
"The study found that the costs that credit unions bear as a result of regulation, even when conservatively measured, are very high, and have increased substantially since the financial crisis and the Great Recession," Cornerstone concluded in the study of 53 credit unions. "The burden is particularly egregious for smaller institutions."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
