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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
Q1 2017 0.79 -63% -35% 47 222 -73% -48% $10,360 1945 1.9 57 0.57 -51% 3.86% 11
Q4 2016 2.16 33% 3% 115 809 88% -16% $53,046 6057 6.0 116 1.16 17 7.76% 9
Q3 2016 1.63 35% 33% 77 430 -4% 12% $39,734 2727 2.7 99 0.99 -34% 6.54% 14
Q2 2016 1.21 0.8%% -30% 73 447 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

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 Q1 2017 BCI marked the lowest FTE consumption score in the history of the Index. The average financial institution, for the first time ever, needed less than one full-time employee to handle the new regulatory burden. The score is down 63% from the previous quarter and 35% over the same time last year. Similarly, hours spent analyzing and implementing new regs declined 73% from the fourth quarter of 2016, totaling only 222 compared to Q4 2016's whopping 809-hour high. This resulted in costs of $10,360, down more than $43,000 from the prior quarter's figure. The dramatic decline in regulatory burden may in part stem from actions taken in Washington as new political leadership took office in the White House and Congress.  There was also a slowdown in enforcement, with new enforcement actions across all agencies dropping to just 57.  This 51% decline from the prior quarter left the overall rate of enforcement at 3.86%, the lowest rate since the Index was launched in 2013. Enforcement may have been less vigorous as various Federal agencies reconfigured their teams after the administrative changes in D.C.  There remain as of this writing many unfilled key posts at three prudential regulators (OCC, Fed, FDIC) and the future of the CFPB has a degree of uncertainty given bills introduced to abolish or defund the Bureau, or reorganize its leadership. 

Click here for the Full BCI Q1 2017 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
Q4 2016 67,630 231.4 $10,939 $3.12M 126
Q3 2016 67,378  191.7  $8,982  $2.69M  110 
Q2 2016 69,615 198.3 $9401** $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

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 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.