What is EGRPRA?
The law known as the Economic Growth and Regulatory Paperwork Reduction Act of 1996
(EGRPRA) requires the federal financial regulatory agencies to identify outdated,
unnecessary, or unduly burdensome statutory or regulatory requirements.
The agencies must then eliminate unnecessary regulations to the extent appropriate.
Significant issues raised by the public and requiring legislative changes will be
referred to Congress for appropriate action.
The first publication cycle must be completed by September 2006.
Of course, any changes made to reduce regulatory burden have to ensure the continued
safety and soundness of insured depository institutions and retain necessary consumer
protections.
Why Is EGRPRA Important?
By passing EGRPRA, it is clear that Congress wanted further attention paid to the
regulatory burden imposed on insured depository institutions, and wanted the
financial industry and the public to have an opportunity to submit comments and
recommendations for improvement.
The agencies agree that any unnecessary burden should be eliminated and view the
EGRPRA initiative as facilitating particularly effective burden reduction.
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EGRPRA’s overall focus on the "forest" of regulations allows the financial industry, the public and the agencies to step back and look at groups of related regulations for streamlining. It may be possible, for example, to identify statutes and regulations that share similar goals and then consolidate compliance requirements.
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A significant aspect of the EGRPRA review is the recognition that effective burden reduction in certain areas may not only require the agencies to change regulations but may also require legislative changes.
Why Should Bankers and Consumers Comment?
As part of EGRPRA, Congress requires the federal financial
regulatory agencies to seek input on every regulation. We want to hear from the
banking industry, consumers,and any other interested party.
Bankers and consumers should comment because, to a very great extent,
the comments we receive will determine which issues will be considered
significant and which changes to regulations and laws will actually be pursued.
Bankers and consumers should comment so that we will know
which specific rules and laws you believe are the most difficult to comply
with, the most costly to administer, the most confusing to bank personnel, and
the most troublesome for customers.Our mandate under EGRPRA is to eliminate outdated, unnecessary, or unduly
burdensome regulations where it is appropriate.Your input makes it possible for us to know where the problems are and
what should be done to make improvements.
Bankers and consumers should comment because EGRPRA is a
unique opportunity for the regulators, the financial industry, and consumers to
join efforts to improve the financial industry regulatory process.
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