The Independent Community Bankers of America (ICBA) recently argued that the proposed rule by federal regulators to implement quarterly reporting relief does not meet all of the requirements of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
A provision in the law establishes a short-form call report in the first and third quarters for banks with total consolidated assets of less than $5 billion while requiring them to continue to file the full report at mid-year and year-end.
“While ICBA continues to review the federal regulators’100-page proposal to implement call report relief, our initial impression is that they failed to meet the intent of Congress,” ICBA President and CEO Rebeca Romero Rainey said. “Under the regulatory relief law, Congress and the president required the agencies to institute a short-form call report in the first and third quarters for many community banks following the enactment of S. 2155 on May 24, 2018. Unfortunately for consumers and local communities, today’s proposed rule barely moves the needle in reducing the unnecessary reporting burdens that inhibit lending and economic growth.”
ICBA is calling on regulators to limit short-form reporting to the balance sheet, income statement, and statement of changes in shareholders’ equity without any other supporting schedules.
“Creating a simple but effective short-form call report for the first and third quarters will free up employees and other resources that should be serving community bank customers and Main Street communities,” Rainey said. “Congress and the president have recognized the reporting burden associated with the call report and identified the solution to bring community banks the relief they so desperately need. It is now incumbent upon the regulators to enact comprehensive and meaningful reporting relief, as policymakers intended. ICBA will continue reviewing the proposed rule and respond in greater detail at a later date.”