Community banks feel weight of more regs

The next time a banker complains about over-regulation he will have some muscle to back up the vent.

In fact, the Independent Community Bankers of America, a leading lobbying group, recently reported that 900 new and proposed rules have been entered into the Federal Register since 2007. These regulations, say ICBA officials, have a steep cost.

For example, the organization cites a Federal Reserve study, one that predates the onslaught of rules, which says “the most burdensome regulations amounted to more than 14% of community bank operating expenses.” ICBA officials worry that things will only get worse for community banks. Smaller banks are in especially tenuous positions, given many already operate on thin margins.