The community banking sector of
the US financial system is celebrating a victory as provisions
to remove compliance with the Volcker rule came into effect
last month. Introduced as part of bill S.2155, the
Economic Growth, Regulatory Relief and Consumer Protection
Act, also known as the Crapo Bill, means that banks with
under $10 billion in total assets and total trading assets and
liabilities of five percent or less of total consolidated
assets are now exempt from Volcker compliance.
Seen as something of a burden for banks of this size,
largely community banks, the move removes a serious compliance
headache for a part of the industry that was not active in
proprietary trading to a level deemed nearly as risky as other
However, it does not mean that these banks will be able to
act unperturbed going forward. They will still be monitored by
banking regulators under normal...