Focus on Compliance


On average, compliance spending is outpacing growth of net income at the nation's largest financial and thrift institutions.

A Deloitte Center for Banking Solutions survey found that compliance spending as a percentage of net income rose to 3.69% in 2006 from 2.83% in 2002.

Respondents also recognized that compliance is a customer and reputation issue. Three-quarters said they've noticed a burgeoning link between their compliance abilities and their reputation with customers over the past five years and expect the trend to continue.

Other findings included:

n 60% of individuals with the primary responsibility for compliance reported directly to the CEO.

n 40% said time devoted to compliance has increased by more than 25% since 2002.

n 95% measured compliance performance through internal feedback from testing activities and an internal audit. Other popular methodologies included formal and informal meetings with regulators (90%), industry surveys (80%) and quantitative metrics (55%).

For the study, the Deloitte Center for Banking Solutions surveyed chief compliance officers, chief risk officers and other senior executives at 20 of the top 50 domestic financial and thrift institutions.

Source: Navigating the Compliance Labyrinth: The Challenge for Banks, Deloitte & Touche USA LLP, www.deloitte.com.

<% server.execute /pubs/jofa/includes/footer.htm %>

SPONSORED REPORT

Implementing a global statutory reporting maturity model

Assess your organization's capabilities and progress toward an ideal state of global statutory reporting. Sponsored by Workiva.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.