Pub. 6 2011-2012 Issue 2

www.nebankers.org 8 Extraordinary Service for Extraordinary Members. A SECOND TAKEAWAY IS THAT compliance is an essential function within any bank. Four legs support the mod- ern bank business model: manage- ment and employees; products and services; marketing; and compliance. Each element supports and is neces- sary to the others. The serious focus on regulatory is- sues is not without reason, considering the extreme swing of the regulatory pendulum that we’ve seen in the aftermath of the financial crisis and the passage of the Dodd-Frank Act. However, when regulations get in the way of your bank’s ability to serve your customers and grow your communi- ties, things have clearly gone too far. I’ve heard that frustration expressed by many of you during my visits with you at state bankers associations around the country. You want to do the right thing, but the regulatory environment—the overall burden, the overkill, and overzealous examiners— is blocking your path forward. We’ve got to work together to change that. In a perfect world, the banking industry would have an equal partnership with its regulators, who would be more vested in seeing banks succeed than writing themup on items where they’ve failed. The truth is that the regulatory culture has to change. It’s a big challenge, but we have to begin moving toward that goal. How? It starts with being involved. As I told the bankers at our Regula- tory Compliance Conference, it’s important for bank CEOs to listen to their compliance staff members, and learn what is and isn’t working in their institutions. CEOs need to share this information with their state associa- tions and ABA. (You might want to join ABA’s Open Compliance Commit- tee, which “meets” every other month by regularly scheduled conference call. You can learnmore about this commit- tee on www.aba.com .) This way, when we meet with regu- lators and lawmakers, we can continue to effectively present the industry’s case by providing credible, real-world examples and anecdotes. These are things that will be remembered by policymakers. Ask for your staff members’ input and let us know what you’ve learned. Together, we can begin moving the regulatory pendulum back into equi- librium. Z Washington Update I recently had the chance to speak before bankers gathered at ABA’s annual Regulatory Compliance Conference here in Washington, D.C. One takeaway for me is how very well served your banks are by these dedicated and professional compliance officers. Reach Frank Keating by e-mail at fkeating@aba.com. Pushing the Pendulum Frank Keating , President & CEO, American Bankers Association