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.”