The Banking Compliance Index™ (BCI) measures the incremental cost burden on financial institutions to keep up with regulatory changes.
|FTE Consumption Score||FTE Consumption % Change Quarterly||FTE Consumption % Change Quarter on Quarter||Regulatory Changes||Hours to Comply/ Institution||% Change in Hours To Comply||% Change In Hours to Comply Quarter On Quarter||Incremental Cost Per Institution per Quarter||Regulatory Changes Page Count||Pages in Thousands||EAs||EAs/ 100's||% Change in EAs**||EA Rate||Avg. # Items in an EA|
The Banking Compliance Index (BCI) is a quarterly tracking index published by the Regulatory Operations Center®. It measures the incremental cost burden on financial institutions to keep up with regulatory changes. The BCI data sources include: CFPB, FDIC, FED, NCUA and OCC. The BCI is calculated using an average size institution of $350 million.
The Q4 2016 BCI indicates that the average financial institution needed 2.16 additional full-time equivalents (up from 1.63 in Q3 2016) just to manage the regulatory changes and enforcement climate for that quarter. This translates to an additional $53,046 cost burden for the quarter, bringing the trailing twelve months' figure to $151,433. This jump can be attributed in part to the significant increase in number of issuances (115 compared to 77 in Q3) and number of pages (6057 compared to 2727 in Q3) that financial institutions had to process. On top of more issuances and pages to work through, the enforcement climate went from “cool” to “warm” in Q4. The rate of enforcement increased compared to Q3, but is still trending low, coming in at 7.76% (compared to Q3’s rate of 6.54%). This slight increase is likely due to the post-election year phenomenon, as activity slowed leading up to the election but may now be starting to normalize.
The BCI is used as reliable reference data to publications such as The Economist, WSJ, Bloomberg, American Banker, Independent Banker, Bank Innovation, Credit Union Times, Credit Union Journal, Mortgage News Daily and Reverse Mortgage Daily.
|No of Actions Completed*||FTE Hour Savings per Institution||Savings per Institution||Savings across all managed Institutions||FTE Saved across all Institutions|
The Compliance Savings Index™ (CSI) is a quarterly index published by Continuity's network of community financial institutions. This index shows tasks, completed in response to regulatory compliance requirements, actioned by these institutions over the Q4 2016 period and the trailing twelve months.
*Sources: Continuity, FDIC
**During Q2 2016 there was a 24% decrease in the number of RegAlerts™ we issued to our clients and we made several filtering enhancements to our solutions that allowed our clients to limit what they see even more closely to their needs and that is reflected in the decrease of savings per institution.