Balancing regulation, innovation in banking
In June, the
But the changing regluatory landscape has bankers waiting and wondering what comes next -- from small community banks to members of the
Earlier this month,
"While it is appropriate to evaluate adjustments that might improve our regulatory regime, it is critical that we do not forget the hard-learned lessons of the crisis and -- in the haste to reverse course -- undermine the robustness and resilency of the financnial system," Dudley said in the speech.
For
"With banking being the primary financial intermediary in our country and an important economic tool and driver, it is important that banks are financially healthy and sound and in position to provide capital to consumers and businesses so they can fulfill their financial aspirations," Page said.
That includes a system that is flexible and does not lump small community banks and large investment firms under the same regulatory umbrella while maintaining banks on sound financial footing.
"Left alone, they are capable of imprudent business practices, which could negatively impact the economy and consumers," Page said.
There is a tendency these days to see federal regulations as inherently harmful to businesses and an unnecessary drag on productivity and profitability. But the demonization of regulatory oversight is a political perspective and is not borne out by Page's personal experience.
"I can't really speak for the whole industry, but from a personal experience, our state and federal regulators we have worked with have been fantastic," Page said. "They have tailored their regulations to our situation and we consider them stakeholders in our bank."
That perspective is the key ingredient in the success of any regulatory system. Working cooperatively rather than as adversaries will ensure the continued health of the banking system where consumers and business owners alike can have confidence in their financial institutions and have confidence in their economic futures.
Dudley acknowledged that finding the right balance between enforcement and cooperation can be tricky.
"Regulatory requirements should be appropriately calibrated to avoid inadvertently creating a compeitive advantage for larger financial firms," he said in the speech.
In a partisan atmosphere, finding the right balance between too much and too little regulation can be difficult. But it is important to consider the breadth and depth of the financial services industry and to be cognizant of the implications of regulations on the entire range of banking firms.
"The way we are structured as an industry is a reason why we have thrived," Page said. "Overall, our country has the most economic prosperity of any country in the world and our banking system has been a big part of that."
Let's hope it stays that way.
___
(c)2017 The News-Journal, Daytona Beach, Fla.
Visit The News-Journal, Daytona Beach, Fla. at www.news-journalonline.com
Distributed by Tribune Content Agency, LLC.
Sen. Strange Discusses Next Steps to Repeal Obamacare on Fox News
Essex County Employee Charged With Insurance Fraud for Allegedly Filing Bogus Wage Reimbursement Claims
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News