03/28/2024
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Rotary Mike DavisThe Elizabethtown Rotary Club learned about the banking industry from fellow Rotarian Mike Davis last week.

 

He explained the banking industry is the second most regulated industry. He noted that the nuclear industry is the most regulated industry in the United States.

 

Rotarian Davis explained that the banking industry is regulated with regards to two things: safety and soundness of the bank and consumer protection. He told the group that it is expected he and his staff will comply with all of the regulations. Rotarian Davis said that compliance with the regulations is about protecting the consumer.

 

He said as of 2009, more and more regulations are being produced that are aimed at the banking industry. Rotarian Davis said some of these regulations came about as a result of the housing market crash.  As a result, he said banks are restricted in the types of loans they can issue, what types of credit scores the bank can accept, and so on.

 

Rotarian Davis also told the group that as a result of the crash, the bank must ensure they verify all information a customer submits and more documentation is now required for loans. Rotarian Davis said banks are still making loans, they are just doing a better job of documenting the required information.

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