Regulatory Relief Provides Flexibility, But Banks Should Consider Risk Management Effects

With the relief offered by the Economic Growth, Regulatory Relief, and Consumer Protection Act, signed by President Donald Trump on May 24, 2018, some small depository institutions and credit unions with consolidated total assets of less than $10 billion now have more flexibility to determine what is appropriate for their operations. At the same time, however, bank management should consider whether continuing to adhere to some of the lifted requirements makes good business or risk management sense. This article includes key provisions affecting small institutions and Protiviti’s commentary on each.