In 2014, regulatory pressure is expected to flow downstream to smaller institutions, encouraging them to retool their compliance infrastructure. Proposed stress tests for midsized banks may expose deficiencies, forcing some to restructure their risk profiles. Smaller institutions may need to invest in new talent and training to ensure that adequate compliance resources are available. As a result, regulatory compliance could become more ingrained in the broader industry culture.
Firms that are able to institutionalize compliance in an effective and efficient manner could create competitive advantages, allowing them to best pursue their growth agenda. But as Tom Rollauer, executive director, Deloitte Center for Regulatory Strategies, Deloitte & Touche LLP, said, “It is also essential that banks continue to work more collaboratively with regulators in strengthening their compliance programs.”