Banks and credit unions are more worried about regulatory and risk management pressures than they were a year ago, according to a new report from Wolters Kluwer Financial Services.
The regulatory and risk management indicator for the U.S. banking industry rose to 121 in January 2014, compared to a baseline of 100 in January 2013. Wolters Kluwer measures lenders' experience of the current compliance and risk management environment by surveying nearly 400 banks and credit unions and compiling regulatory data.
The Consumer Financial Protection Bureau's recently finalized qualified mortgage requirements rattled lenders and drove up the indicator score, according to the report. Just one-third of respondents said that they plan to offer non-qualified mortgage home loans after the rules take effect. Lenders also expressed increased concern over mortgage servicing requirements and exam guidelines.
When it comes to risk management, lenders are most concerned with regulatory compliance and fair lending, according to the report.
As financial institutions' anxieties about regulations and risk management grow, so do the resources they pour into those areas, according to the report.
"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," Timothy Burniston, vice president and senior director of Wolters Kluwer's risk and compliance consulting practice, said in the release.