Regulatory & Risk Management Burden Grows Heavier for U.S. Banks and Credit Unions
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  • Regulatory & Risk Management Burden Grows Heavier for U.S. Banks and Credit Unions

    March 18, 2014

    Wolters Kluwer Financial Services' Indicator Shows Significant Increase in Past Year 

    MINNEAPOLIS - U.S. banks and credit unions are carrying a much heavier regulatory and risk management burden than they were a year ago. That's according to the results of the latest Regulatory & Risk Management Indicator for the U.S. banking industry issued today by Wolters Kluwer Financial Services, a comprehensive provider of risk management, compliance, finance and audit solutions and services.

    The Indicator began with a baseline score of 100 in January 2013 when Wolters Kluwer Financial Services surveyed nearly 400 U.S. banks and credit unions. It rose to a score of 121 in January 2014 when the company surveyed approximately the same number of financial institutions. Driving the increased score were mounting pressures expressed by banks and credit unions in all seven of the Indicator's compliance and risk management factor categories as well as more than $8 billion in new regulatory fines and settlements at the federal level in the last three months of 2013.

    To calculate its Regulatory & Risk Management Indicator, Wolters Kluwer Financial Services uses 10 main factors, seven of which revolve around direct input from banks and credit unions on their top compliance and risk management concerns and three of which are based on regulatory data the company compiles.

    In particular, financial institutions participating in the Indicator demonstrated a significantly heightened concern over the Consumer Financial Protection Bureau's recently finalized Qualified Mortgage, Qualified Residential Mortgage and mortgage servicing requirements and guidelines. In fact, only a third of respondents said they planned to offer non-QM home loans following the implementation of the CFPB's new rules.

    On the risk management front, banks and credit unions remain most concerned with regulatory risk and fair lending risk more specifically. Other major risk management concerns included asset and liability management, IT risk and fraud.

    "The latest Indicator results verify a growing number of U.S. banks and credit unions are more proactively addressing regulatory change and potential risks," said Timothy Burniston, vice president and senior director of Wolters Kluwer Financial Services' Risk & Compliance Consulting Practice.

    "Not only are these institutions more concerned about compliance and risk management, but they're also devoting additional time and resources to addressing these areas to head off potential issues, and facilitate growth and performance objectives."

    For more information on Wolters Kluwer Financial Services Regulatory and Risk Management Indicator for the U.S. banking industry, please visit

    About Wolters Kluwer Financial Services 

    Wolters Kluwer Financial Services provides more than 15,000 customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. With more than 30 offices in 20 countries, our prominent brands include: AppOne®, ARC Logics®, AuthenticWeb™, Bankers Systems, Capital Changes, CASH Suite™, FinArch, FRSGlobal, GainsKeeper®, NILS®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading global information services and solutions provider with annual revenues of (2013) €3.6 billion ($4.7 billion) and approximately 19,000 employees worldwide.