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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
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 .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
Q3 2015 1.23 -28% -34% 70 384 -34% -41% $29,145 2231 2.2 170 1.70 -18% 10.71% 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 Q3 2016 BCI shows that the average financial institution will require 1.63 additional full-time employee equivalents (FTEs) to deal with the regulatory changes and enforcement climate that happened between July and September of 2016. This represents an additional $39,634 cost burden for the quarter, bringing the trailing twelve months' cost figure to $150,676 to keep up with the ever-changing regulatory environment. While the number of new rules held within normal ranges (77), the enforcement climate cooled dramatically, from "warm" to "cool." The rate of enforcement dipped below 7% for the first time since the index was introduced, coming in at 6.54%. A variety of factors may have contributed to this drop-off. Among them: the election year phenomenon,a declining number of banks to oversee, a focus on larger institutions' actions and the complexity of enforcement at the biggest banks, and external pressures of legislative and judicial action on the agencies to exercise more prudence and greater discretion in doling out punishment.

Click here for the Full BCI Q3 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
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
Q3 2015 66,823 353.8 $16,139 $3.13M 132

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 Q3 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.