Rudzewick spoke with representatives Kathleen Rice and Lee Zeldin and proposed changes to regulatory procedures he said are excessive for small community banks like Maspeth Federal.
“What it does is it disincentivizes providing customers with the products and services they’re asking for, and that limits banks' flexibilities to sell a product to meet our customers' needs,” said Rudzewick.
Rudzewick proposed extending the annual regulatory examination period to 18 months instead of every year.
“It gives us more time to do business, because when the regulators come in to do the review it can between four to six weeks and it prevents us from doing actual work,” said Rudzewick. “If they give us another six months and make it an 18-month rotation, it would certainly be less strenuous on my staff.”
There was also discussion on improving cyber security to prevent data breaches for retailers and credit card companies. When such breaches occur, Rudzewick said it imposes an enormous cost on the bank and the customers to rectify the situation.
“We’d like to see the federal government go to those retailers and say you have to improve your data security so those breeches don’t happen on your end,” said Rudzewick.
Rudzewick, who has attended the summit meetings for the last three years, said he was surprised the members of Congress were very receptive and took the time to listen, a big change from the past.
Rudzewick also sent letters to both senators Charles Schumer and Kirsten Gillibrand regarding similar plans for local banks, and said he expects they will be receptive as well.