- March 28, 2024
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A question that constantly plagues Gulf Coast bankers when it comes to regulation is simple: What do federal regulators really want?
Jennifer Kelly, a high-ranking official with the U.S. Office of the Comptroller of Currency, recently revealed some of the secrets. Speaking during a panel discussion May 4 at the SNL Financial Community Bankers Conference in Welsey Chapel, Kelly reported that bankers, in general, shouldn't fear regulators.
“The real key is a no-surprise approach,” says Kelly, a senior deputy comptroller with the OCC who oversees supervision of midsize and community banks nationwide. “If there's news, or something is going to happen, we'd rather hear it from you than read about it in the paper or see it on our next regulatory exam.”
The two-day SNL Financial Community Bankers Conference was held at Saddlebrook, a resort north of Tampa in Pasco County. Panel topics included credit and capital; building a board; and technology. Charlottesville, Va.-based SNL provides data and analysis for several industries, including banking, insurance and real estate.
Past no surprises, Kelly says banks with a diverse loan portfolio have less to worry about than banks with a high concentration of loans in a certain area. Most local bankers, in addition to the 200 or so bankers who attended the panel discussion, likely were already aware of that directive. Execution, however, is a tougher task — a reality Kelly says she and other regulators understand.
“It's a very different environment,” says Kelly. “There are a lot of competitors for the few loans that are out there.”
Kelly also tried to dispel several myths about banking regulators. Like the one that says the government has a number of banks in mind it wants nationwide, and it will shut down enough to reach that number. Says Kelly: “There isn't any kind of target like that.”