With a greater number of new regulations enacted during the third quarter, the average community bank spent an additional $45,264 to comply, according to New Haven’s Continuity Control.
The 82 regulatory changes during the quarter were the highest since 1995, according to the company, which sells compliance management software.
“Even when the changes are minor in scope, they require time to identify, analyze, and implement,” Pam Perdue, executive vice president of regulatory insight at Continuity Control, said in a statement. “Upticks like these historically have forced banks to add headcount and divert time, money and staff from more profitable areas.”
The company’s Banking Compliance Index defines “community bank” as one with less than $10 billion in assets, which includes all but two Connecticut-based banks.
Over the past four quarters, the average increase in bank compliance costs has totaled more than $153,000, according to the company’s data, which is based on a proprietary formula.
