Friday, May 31, 2013

Minneapolis Fed Publishes Regulatory Burden Calculator for Community Banks

The Minneapolis Federal Reserve created a regulatory burden cost calculator associated with hiring additional compliance full-time equivalent employees (FTEs.) The authors’ methodology is based on measuring regulatory cost through additional hires. The concluded that hiring one FTE reduces ROA by approximately 23 basis points for the median bank with assets below $50 million. The paper points to a crucial hurdle faced by community banks, dealing with the increased costs associated with new regulations.

Read the Minneapolis Federal Reserve piece.

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