Acting Comptroller Noreika Calls For Regulatory Reforms

Acting Comptroller of the Currency Keith A. Noreika described risks faced by national banks and federal savings associations and suggested possible regulatory reforms. In remarks before the Midsize Bank Coalition of America Chief Risk Officer Meeting, Mr. Noreika asserted that institutions currently face significant credit, strategic, operational, and compliance risk.

Mr. Noreika argued that asset thresholds have acted as "competitive barriers" that create a competitive imbalance (see previous coverage). He suggested several potential reforms to remedy this imbalance, particularly as applied to burdens presented by thresholds for stress testing. He also criticized the Consumer Financial Protections Bureau's ("CFPB") arbitration rule, arguing that it will lead to increased costs for consumers and potential adverse effects for community banks. Finally, he emphasized the need to harmonize agency guidance and policies on cybersecurity.