Are government banking regulations overly burdensome for banks and the public?

Yes, but what most people do not understand, much of the regulation comes about from the lobbying effort the bank themselves put it. Every now and then a regulator will publish a brilliant piece of regulation. Checking all the right boxes. This becomes problematic for banks, bankers and other financial institutions who have a vested interest in the industry and see this regulation hamper their progress.

No one wants to oppose a good piece of legislation, so what they do is that they start inserting ‘small’ changes in other pieces of legislation via lobbying efforts that become amendments, annexures, notices, etc. to the exiting piece of legislation.

Every regulation that is published by the regulator has to be programmed into the financial institution’s computer systems, processes, operating procedures, and human resources. A well-written piece of legislation takes a few years to be fully implemented. When over-riding, or conflicting or parallel amendments or opinions come out, that is when more such programming needs to be done that then starts looking like a spaghetti dish gone wrong.

Well-written regulations do not hurt the banking system and public at large, they benefit from it. It is all about mitigating risk, exposure, etc.

However, because most people work in silos, they have a very myopic view of the overall arching effect of the legislation/regulation and then start complaining. Much good in the banking community has been lost in corporate greed and the investment banking market, especially the derivatives market.

Most of what was good for the banking & financial industry has been plagued by a coordinated multi-tiered lobbying effect, which makes regulation look bad. Very bad and hurting for the bank and you.

Truth is, there is always a vested group behind that makes money, typically institutions and no one gives a flying fuck about you, the general public being hurt.

FYI: For every Congressman, there are 5 professional financial expert lobbyists.

You lose out.