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04/10/2024

Regulators Intensify the Pressure on Banks

Bank Director’s 2024 Risk Survey finds heightened concern among bank leaders around regulations, liquidity management and cybersecurity threats.

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About the authors
Written by
Laura Alix Director of Research

Laura Alix is the Director of Research at Bank Director, where she collaborates on strategic research for bank directors and senior executives, including Bank Director’s annual surveys. She also writes for BankDirector.com and edits online video content. Laura is particularly interested in workforce management and retention strategies, environmental, social and governance issues, and fraud. She has previously covered national and regional banks for American Banker and community banks and credit unions for Banker & Tradesman. Based in Boston, she has a bachelor’s degree from the University of Connecticut and a master’s degree from CUNY Brooklyn College.

Laura Alix
Director of Research
Bank executives and directors are feeling the heat when it comes to risk this year, with regulatory pressures, liquidity management and deposit pricing rising as critical challenges. It’s no wonder. Following the bank failures of the spring 2023 — three of the biggest in U.S. history — industry leaders say their organizations faced greater regulatory scrutiny around liquidity strategy, interest rate sensitivity and capital planning, according to Bank Director’s 2024 Risk Survey, sponsored by Moss Adams LLP. The past year has also brought updates to the Community Reinvestment Act from banking’s primary regulators, along with increased scrutiny on fee income.…

Key Findings

Bank executives and directors indicate enhanced concerns over the past year around several key risk areas: cybersecurity (86%), interest rate risk (79%), compliance (78%), regulatory risk (76%), liquidity (76%) and credit (73%). Almost two-thirds of respondents say their bank has undergone a regulatory exam since the March 2023 failure of Silicon Valley Bank, with many of those reporting increased scrutiny around liquidity planning (77%), interest rate sensitivity (50%) and capital planning (46%).  Forty percent say their bank adjusted its fee structure in anticipation of regulatory pressure, particularly on overdraft fees.  Most respondents say they would be interested in applying artificial…

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WRITTEN BY

Laura Alix

Director of Research

Laura Alix is the Director of Research at Bank Director, where she collaborates on strategic research for bank directors and senior executives, including Bank Director’s annual surveys. She also writes for BankDirector.com and edits online video content. Laura is particularly interested in workforce management and retention strategies, environmental, social and governance issues, and fraud. She has previously covered national and regional banks for American Banker and community banks and credit unions for Banker & Tradesman. Based in Boston, she has a bachelor’s degree from the University of Connecticut and a master’s degree from CUNY Brooklyn College.