The Ledger: Planning compliance costs

Planning for the next year means looking back. A 2020 FDIC, Federal Reserve and Conference of State Bank Supervisors survey of community banks reveals how they’re planning for compliance and risk.

Source: Community Banking in the 21st Century Research and Policy Conference, Oct. 1, 2020

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Breaking down the average compliance budget

Personnel Data Processing Legal Accounting & auditing Consulting & advisory
2015 11.4 17.7 20.7 41.5 42.6
2016 12.3 17.8 23 41.7 44.5
2017 10.4 17.1 20.9 39.4 45.9
2018 11.3 18 22.8 42.4 40.5
2019 10.3 17.1 22.6 42.3 38.2

 

How important is risk to your community bank?

Very important Important Moderately important Slightly important Not important
BSA risk 20.2 35.2 30.6 12.1 1.9
Consumer compliance risk 18.5 37.9 29 12.6 1.9
Legal risk 8.9 24.7 34.9 27.2 4.3
Other compliance risk 19.7 41.2 27.8 9.7 1.6