Pub. 9 2014-2015 Issue 3

www.nebankers.org 20 Extraordinary Service for Extraordinary Members. regional office of one regulator had a fair lending criticism rate above 70 percent, while another regulator’s nationwide criticism rate was 20 percent. After this informationwas shared with the regula- tor’s director, the criticism rate in the regional office decreased dramatically to less than 30 percent. Identifying inconsistencies in how banking regulations are being enforced has never been more important, given the avalanche of new requirements resulting from the Dodd-Frank Act. As many of the rules recently have gone into effect, both regulators and the industry are working to understand and implement the new requirements. Bankers have the power to help ensure that the new regulations are consistently enforced across the country. The continued success of the Regu- latory Feedback Initiative depends on banks integrating the survey into their ongoing regulatory compliance process- es. Your bank can participate and make the process work by completing a survey immediately following each regulatory exam or visitation. One of the primary benefits of the initiative is the ability to identify discrepancies in “real time.” By making your voice heard after each exam, you have a unique opportunity to improve the industry’s regulatory climate and truly hold examiners ac- countable. When sufficient data has been gath- ered from the survey, participating banks also may request a report from the Nebraska Bankers Association that summarizes the feedback of simi- larly situated banks (based on asset size, primary federal regulator, region, etc.),which can serve as a powerful resource in exam preparation efforts.  For more information about the Regulatory Feedback Initiative, visit www.allbankers. org/initiative.html. If you have additional questions, feel free to contact Jennifer Heaton at the NBA at (402) 474-1555 or jennifer. heaton@nebankers.org . Regulatory Feedback Initiative Allows Bankers to Make Their Voices Heard I NCONSISTENCY IS AMONG THE TOP concerns bankers have regarding examinations and visitations by their regulators. Rather than re- signing yourself to simply live with these inconsistencies and the uncertainty regarding what issues will be covered in an examination or how a regulation will be enforced, your bank can take ac- tion through the Regulatory Feedback Initiative. The Regulatory Feedback Initia- tive is a powerful tool in the form of a confidential, electronic survey that lets you anonymously provide details on your most recent examination or visitation. In doing so, it creates a new level of transparency in the examination process. Survey results are aggregated and analyzed to identify discrepancies in how banking regulations are enforced, and to help avoid misguided regulatory treatment. Bankers need not be concerned with the anonymity of the survey. Data cannot be traced back to the reporting bank, as it is reported only in aggregate form. Participation in the survey will not violate the confidentiality require- ments associated with any exam. The federal banking regulatory agencies have reviewed the questions within the survey and have raised no concerns regarding confidentiality; rather, the agencies have expressed strong interest in viewing the aggregated survey results. The Regulatory Feedback Initiative already has achieved success in help- ing to improve the quality of banks’ examinations. Based on two years of survey data, the initiative found that the proportion of survey respondents who were “very satisfied” with their safety and soundness and compliance exams by the OCC rose from 17 percent in 2012 to 22 percent in 2013. Even more noteworthy is a victory achieved in early 2012, when survey results uncovered significant discrepan- cies in the way fair lending regulations were being enforced nationwide. Based on data received frommore than 1,000 surveys completed in 2011, national fair lending criticismrates varied among the four federal regulatory agencies by up to 40 percent. It was discovered that a