From the very beginning, our lives are governed by rules, whether we’re on playgrounds, in classrooms or at home. The practical – look both ways before you cross the street – and the moral – don’t bite your fellow toddlers – are the building blocks of becoming a functional member of the greater society.
Those early rules, though most children don’t realize it (and those who do often chafe against it), are also an early introduction to a world brimming with laws and regulations, “guidelines” and “best practices.”
Wherever life takes those kids, whether it’s behind a computer, a sketchpad, a scalpel or a production line, there are rules and regulations to learn and obey. Nothing is certain but death, taxes and visiting inspectors.
Bankers, of course, know all too well the crushing burden of complying with rules and regulations someone else created and imposed. The governmental reaction to the Great Recession was to bury the problems in paperwork, leaving smaller banks struggling to not only understand new regulations, but also implement changes and keep records showing they have met new requirements.
But relief may be on the way via the Economic Growth and Regulatory Paperwork Reduction Act, also known by its ironically complicated acronym, EGRPRA. The law, now nearly 20 years old, requires federal banking agencies to review regulations to eliminate unnecessary or redundant rules at least every decade, and comes due again next year. Regulators seem receptive to simplifying the call reporting process and lengthening the exam cycle.
On the other hand, “compliance” need not be a dirty word, and it need not be compulsory. Across this great state, commercial building owners are prepping to jump on board a new set of building standards. Partially that’s because it’s the right thing to do for tenants and partially because it’s going to save them money, but whatever their motivation, builders are getting ready to design and redesign under the WELL standards.
Perhaps regulators will eventually realize that punishing those who were not responsible for creating a nationwide recession – and contributing to a worldwide recession – only results in angry resentment. It’s unwise to anger the people who control the country’s financial system. Money, particularly in the form of lobbying dollars, really does talk.
At times it seems the sheer number of rules, laws and regulations that govern nearly every aspect of our lives is unmanageable and out of control. Laws are of course important – to punish the bad guys, to compensate the good guys, hopefully to keep society from dissolving into chaos, and the whole “don’t bite your fellow toddler” thing really can’t be overstated. But as we continue our rise from recession, perhaps it’s time for regulators to consider more carrots and fewer sticks.
