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The Banking Compliance Index™ (BCI) measures the incremental cost burden on financial institutions to keep up with regulatory changes. 

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  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
Q2 2016 1.21 0.8% -30% 70 447 4% -23% $29,732 2921 2.9 150 1.50 -13% 9.80% 4
Q1 2016 1.22 -45% -10% 69 428 -56% 29% $29,021 1569 1.6 173 1.73 9% 11.19% 4
Q4 2015 2.23 81% 77% 125 968 152% 159% $52,317 4309 4.3 159 1.59 -6% 10.14% 4
Q3 2015 1.23 -28% -34%% 70 384 -34% -41% $29,145 2231 2.2 170 1.70 -18% 10.71% 5
Q2 2015 1.72 27% 16% 73 582 76% 13% $41,471 1644 1.6 207 2.07 18% 12.90% 5

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 Q2 2016 BCI shows that the average financial institution will require an additional 1.21 full-time employee equivalents (FTEs) to research and address just Q2’s new regulatory changes. This represents an additional $29,732 cost burden for the quarter and a total added cost of more than $140,215 to address the added compliance burden over the last four quarters. The enforcement climate dropped from "hot" to "warm" as the enforcement rate dipped to 9.8% - the first time since Q4 2014 that the rate has fallen below 10%. Compared to an almost 13% rate this time a year ago, and 11.19% last quarter, this decline may signal improved performance by financial institutions or a more measured approach by regulators.

Click here for the Full BCI Q2 2016 Report »

Click here for an image of the BCI table » 

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.

Compliance Savings Index™

  No of Actions Completed* FTE Hour Savings per Institution Savings per Institution Savings across all managed Institutions FTE Saved across all Institutions
Q2 2016 69,615 198.3 $9,401** $2.56M 104
Q1 2016 65,698 297.4 $13,571 $3.32M 140
Q4 2015 61,889 338.1 $15,259 $3.31M 141
Q3 2015 66,823 353.8 $16,139  $3.13M 132
Q2 2015 59,198 321.2 $14,916 $3.18M 131

Compliance Savings Index™

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 Q2 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.