{"id":398873,"date":"2020-12-14T08:03:29","date_gmt":"2020-12-14T13:03:29","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=398873"},"modified":"2020-12-14T08:03:29","modified_gmt":"2020-12-14T13:03:29","slug":"wolters-kluwers-annual-indicator-survey-shows-significant-risk-compliance-concerns-for-u-s-lenders","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/wolters-kluwers-annual-indicator-survey-shows-significant-risk-compliance-concerns-for-u-s-lenders\/","title":{"rendered":"Wolters Kluwer\u2019s Annual Indicator Survey Shows Significant Risk, Compliance Concerns for U.S. Lenders"},"content":{"rendered":"

<\/p>\n

Wolters Kluwer\u2019s Annual Indicator Survey Shows Significant Risk, Compliance Concerns for U.S. Lenders<\/b><\/p>\n

2020 Regulatory & Risk Management Indicator score increases by eight points<\/i><\/p>\n

MINNEAPOLIS–(BUSINESS WIRE<\/a>)–
\nRegulatory compliance and risk concerns remain high in a number of key areas for U.S. banks and credit unions, according to the results of Wolters Kluwer\u2019s 2020 Regulatory & Risk Management Indicator<\/i><\/a> survey. This year\u2019s survey, conducted by Wolters Kluwer\u2019s Compliance Solutions business<\/a>, generated a Main Indicator Score of 103, an eight-point increase over the 2019 score. This was influenced by concerns about managing regulatory change, mortgage-related regulations, and U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act requirements.\n<\/p>\n

\nThe COVID-19 pandemic weighed heavily on respondents\u2019 minds: 86 percent view the pandemic as a significant or moderate factor in their organizations\u2019 enterprise risk planning. Other areas of high concern include loan default risk (85 percent), business resilience and adaptability (79 percent), and recession fears (78 percent).\n<\/p>\n

\n\u201cRelatively high levels of concern remain across a range of areas, reinforcing the fact that regulatory compliance and risk management issues continue to significantly challenge financial institutions,\u201d said Timothy R. Burniston<\/a>, Senior Advisor for Regulatory Strategy with Wolters Kluwer Compliance Solutions. \u201cThat said, respondents expressed their highest levels of confidence in the past four years regarding their organizations\u2019 ability to manage risk across all business lines.\u201d\n<\/p>\n

\nBurniston will share insights on this year\u2019s Indicator survey findings in a webinar, \u201cAnnual Survey Results Signal Direction for Banking Industry<\/i><\/a>,\u201d 2-3 p.m. EST Wednesday, Dec. 16, along with Wolters Kluwer Senior Specialized Consultant Elaine Duffus<\/a> and Steven D\u2019Alfonso<\/a>, Research Director, IDC Financial Insights.\n<\/p>\n

\nThe calculation of the Main Indicator Score is based on several factors, including the number of new federal regulations, number of enforcement actions, and the total dollar amount of fines imposed on banks and credit unions over the past 12 months, together with additional information provided by survey respondents. The survey was conducted nationwide between August 4 and September 3, 2020 and generated 665 responses.\n<\/p>\n

\nOf top obstacles cited in implementing effective compliance programs, 46 percent ranked manual compliance processes as a \u201c7\u201d or higher concern on a 10-point scale, and 41 percent cited inadequate staffing, both slight declines from 2019 levels. Perceptions of regulatory scrutiny of fair lending programs remained relatively unchanged, with 42 percent indicating that the level has remained the same.\n<\/p>\n

\nLooking forward to 2021, top risk management priorities identified include cybersecurity (72 percent), credit risk (61 percent) and compliance risk (40 percent), with concerns about credit risk having jumped 16 percentage points from 2019\u2019s survey.\n<\/p>\n

\nAsked about prospects for reduced regulatory burden the next two years, respondents revealed greater pessimism, with 56 percent citing the likelihood of regulatory relief as either \u201csomewhat unlikely\u201d or \u201cvery unlikely\u201d compared to 45 percent in 2019.\n<\/p>\n

\n\u201cThe input from our survey respondents reflects another year of challenges for the U.S. banking industry as it navigates through the tumultuous impacts of the pandemic–and accompanying regulatory changes,\u201d said Steven Meirink<\/a>, Executive Vice President and General Manager for Wolters Kluwer Compliance Solutions. \u201cThe industry has weathered these challenges admirably, and we continue to support our clients in addressing the many regulatory and risk management issues they face as they work to serve their customers.\u201d\n<\/p>\n

\nOver the next 12 months, respondents\u2019 most pressing regulatory compliance challenges include, in order of importance, keeping current with and managing regulatory changes, pandemic impacts, mortgage-related regulations, and employee staffing challenges. Respondents also expressed a high level of concern about their ability to comply with Bank Secrecy Act\/Anti-Money Laundering requirements, fair lending laws and regulations, Current Expected Credit Losses (CECL) standards, and possible beneficial ownership rule changes.\n<\/p>\n