Regulatory change in 2021: The potential pace and scope
New presidential administrations bring about change. However, the implications for bank regulatory compliance depend on the president-elect’s agenda and the current economic environment.
All evidence suggests that the incoming Biden administration will reinstate or refocus on some of the regulations eliminated or eased over the last four years, in particular those related to fair lending. The Georgia runoff races solidified a Democratic majority in the U.S. Senate, which could accelerate legislative change.
But the president-elect’s agenda also faces headwinds. Regulatory change requires broader support. And despite rapid progress on vaccines, the pandemic is far from over. Its economic fallout could last, especially for hard-hit industries and demographics.
Financial institutions can best prepare for this new administration by keeping close tabs on its expected regulatory priorities.
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