Jennifer's Notes

Welcome to the spring 2012 edition of S&R Perspectives. It was great to see so many of you at our Community Banker Forums in November. At the forums, you voiced concerns over regulatory burden, credit availability, the Dodd-Frank Act (DFA) and the Consumer Financial Protection Bureau (CFPB). In this column, I’d like to address some of those concerns, reflect on the past year and look forward to the rest of the year ahead. 

In 2011, the Federal Reserve System remained focused on implementation of DFA. There was progress in areas such as the repeal of Regulation Q, the Collins Amendment and the Durbin Amendment. Proposed rule-making on resolution expectations and on enhanced prudential standards was published. We’ve been closely following the development of the CFPB, as we will need to supervise our institutions in accordance with their rules.  

Within the System, the Board recently formed a subcommittee, led by Governors Duke and Raskin, to focus on supervision of community and regional banking organizations. This group is reviewing various policy statements with an eye toward reducing burden and ensuring we are not inhibiting credit availability. Going forward, new supervisory guidance will be explicit regarding its applicability to community banks. The System recently completed a review of the applications process and will be making some changes to improve efficiency and timeliness. 

The year 2011 was challenging, and 2012 looks to be as well; however, we are seeing some “green shoots.” Asset quality problems are beginning to stabilize, and we’re seeing more restructuring of problem loans. We’re also seeing some upgrades in CAMELS ratings and the economy seems to be picking up steam. So, there is some light on the horizon. 

Now, on to the rest of this edition of S&R Perspectives. Please complete our brief, online survey to ensure that we are covering topics and issues that are important to you. 

The analyses and conclusions set forth in this publication are those of the authors and do not necessarily indicate concurrence by the Board of Governors, the Federal Reserve Banks, or the members of their staffs. Although we strive to make the information in this publication as accurate as possible, it is made available for educational and informational purposes only. Accordingly, for purposes of determining compliance with any legal requirement, the statements and views expressed in this publication do not constitute an interpretation of any laws, rule or regulation by the Board or by the officials or employees of the Federal Reserve System.

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