Comptroller Reviews Regulatory Environment for Community Banks and Mutual Associations

Comptroller of the Currency Thomas J. Curry described the "diversity" of banking entities in the American financial system. In an address at Central Connecticut State University, he highlighted the continuing need for effective mutual savings associations and community banks. Comptroller Curry cited changes to the Call Report that streamline reporting for community banks as a positive example of relieving undue regulatory burdens on smaller banking entities.

Comptroller Curry called on Congress to act on a number of deregulatory proposals, including the agency's community bank and thrifts exemption from the Volcker Rule (providing compliance relief to banks with less than $10 billion in assets) and increased flexibility for thrifts to expand their business model. He also called on regulators to preserve certain safeguards like the Liquidity Coverage Ratio implementation and Net Stable Funding Ratio proposal. Citing the value of strong capital and the need for ample liquidity, Comptroller Curry reported that banks (even community banks) are stronger, have a return on equity nearly recovered to pre-crisis levels and steady loan growth.

The Comptroller concluded that effective supervision by "highly trained professional examiners" is "the most powerful means of affecting behavior and promoting a healthy risk culture among financial institutions."

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