Urban Partnership CEO: Rules Spurring 'Fear Factor' Among Banks

Thursday, May 1, 2014

Urban Partnership Bank CEO William Farrow discussed bank regulation in an interview with Bloomberg. According to Farrow, the regulations “have created a series of challenges” for community banks. He discussed the “fear factor” community development banks feel that any mistake will prompt severe regulatory repercussions. But labor costs for compliance officials can be high in the current competitive market. Technological necessities also pose big challenge as bank must ensure their third party vendors are also compliant. Farrow says Urban Partnership so far has had more than 70 regulatory-related visits, requiring the attention of employees who otherwise would be serving customers.