New Report Details Trends in Community Banking
Across Kentucky, Nation
State
Banking Regulators, Federal Reserve Release 2017 National Survey
FRANKFORT, Ky. (Oct. 10, 2017) -
The Kentucky
Department of Financial Institutions (DFI) joins the Conference of State Bank
Supervisors (CSBS) and the Federal Reserve in releasing an annual report that
features the findings of a nationwide survey on community banking.
In the
report, Kentucky bankers shared insights and concerns about the economy,
competition and regulatory burden. The
report was released in conjunction with the Community Banking in the 21st
Century Research and Policy Conference, held in early October and hosted by the
Federal Reserve and CSBS. The fifth annual research conference brought together
community bankers, academics, policymakers and bank regulators to discuss the
latest research on community banking.
“The report
indicates Kentucky community bankers are experiencing similar challenges and
opportunities as other community bankers nation-wide,” said DFI Commissioner
Charles Vice. “I’m pleased to have Kentucky represented within this report,
which shows how vital community banks are to local and national economic growth
and prosperity.”
A total of 611
community bankers in 37 states – more than 10 percent of the commercial banking
industry – participated in the 2017 national survey. State banking
commissioners from 30 states conducted the state-by-state banker interviews.
Each commissioner asked community bankers detailed questions with respect to
five key areas: economic trends, regulation, small business lending, management
succession and technological innovation.
Highlights
from Kentucky banker interviews include:
- Kentucky bankers expressed frustration regarding the slow pace of federal regulatory relief for community banks, particularly surrounding the Home Mortgage Disclosure Act (HMDA), TILA-RESPA Integrated Disclosure (TRID), and Qualified Mortgage (QM) rules.
-
Impediments
to small business lending include the following: minimal small business
formation, excessive competition, regulatory scrutiny and lack of qualified
appraisers in rural, insular communities.
-
Employees
in compliance, information technology (IT) and lending are in high demand and
have high marginal costs if replaced. Due to the fast pace of change and
increased cybersecurity threats, hiring employees with sufficient IT skills is
particularly difficult.
New to the
conference this year, the Federal Reserve released a series of “Commissioner
Commentary” videos highlighting how community banks meet the credit needs of
the communities they serve. Kentucky DFI Commissioner Charles Vice is featured
in the series and discusses how a community bank was able to meet the needs of
its customers and the broader community following the 2012 tornado in West
Liberty. The video can be viewed here: https://www.communitybanking.org/news/091217-commissioner-commentary-kentucky.
The Community Banking in the 21st Century report
is available online at www.communitybanking.org. That website also provides
information, proceedings, research papers and case studies from this year’s
conference.
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DFI, http://kfi.ky.gov, is an agency in the Public Protection Cabinet.
For more than 100 years, it has supervised the financial services industry by
examining, chartering, licensing and registering various financial
institutions, securities firms and professionals operating in Kentucky. DFI’s
mission is to serve Kentucky residents and protect their financial interests by
maintaining a stable financial industry, continuing effective and efficient
regulatory oversight, promoting consumer confidence and encouraging economic
opportunities.
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