According to a recent report conducted by the Federal Deposit Insurance Corporation (FDIC), since the enactment of the Dodd-Frank Act almost three years ago, community banks continue to struggle with navigating the burdensome and complex rules and regulations of the law.
"The Dodd-Frank Act and its 400 regulatory rules and mandates impose uncertainty and increased complexity of compliance, which in consequence are hindering our community bankers. This report outlines many of the concerns I have heard from the community bankers in my district that complying with these regulations are costly and curbing the growth of community banks."
A portion of the report summarizes interviews that were held with community bankers, where participants stated that no one regulation, but rather the cumulative costs to comply with multiple regulations are preventing new community banks from forming. Since 2011, no new community bank charters have been granted, due in part to the regulatory burden of Dodd-Frank.