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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
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
Q4 2015 2.23 81% 77% 125 968 1.52% 1.59% $52,317 4309 4.3 159 1.59 -6& 10.14% 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 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.

Click here for the Full BCI Q4 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
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.