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 www.WoltersKluwerFS.com.
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.