Resource Library

$10 Billion in Assets = Increased Compliance and Regulations

$10 Billion in Assets = Increased Compliance and Regulations

Is your financial institution approaching the $10 billion mark? As a small, regional or community bank, there are some significant implications to crossing the $10 billion line when it comes to compliance requirements.

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was implemented as a comprehensive reform and regulation of the financial services industry. Since its inception, financial institutions must take a close look at what their current operations look like and whether or not it’s worth crossing the $10 billion mark.

Here’s what entering the $10 billion club looks like from a data storage perspective:

Retention - According to the FDIC, financial institutions are required to keep all records indefinitely to the extent that there is a present or reasonably foreseeable future or historical need for them. This means financial institutions must address the economic impact of archiving documents economically. Choosing a data storage solution that will have the flexibility to expand as needs change is necessary.

Accessibility - All financial institutions are subject to frequent audits by regulators. However, financial institutions with assets reaching $10 billion or greater can expect larger and more frequent examinations. Full-scope point-in-time observations, as well as monitoring off-site activities, are commonplace for financial organizations that have surpassed the $10 billion mark. This means that financial institutions must be at the ready for any regulator to request information at any time. Incorporating a system that allows for easy archiving and retrieval is vital.

Cybersecurity - As financial institutions grow, the risk increases significantly. Larger organizations have a greater number of entry points and become more involved in securing. It is also difficult to maintain a reasonable amount of flexibility that allows employees to perform their job without compromising security efforts. Working with a professional data storage provider that has experience in highly regulated environments is important to provide a solution with built-in encryption and other monitoring tools for the IT department to efficiently monitor activity.   

If your financial institution is approaching the $10 billion mark, perform a gap analysis to identify how your organization currently stands and what steps you need to take to reach compliance. Financial institutions must also be mindful not only of the law but also of subjective elements that might affect their organization.

As the nature of the financial services industry continues to evolve, we will see changes in compliance and regulatory reform that will focus more on digital aspects of banking. Financial institutions big and small will be forced to take a hard look at their current operations and make changes. 

  • Dynamic Solutions International
  • 8744 Lucent Blvd Suite 106
  • Highlands Ranch Colorado 80129
  • United States of America