What is one of the challenges faced by community banks regarding compliance?

Community banks often face significant challenges when it comes to compliance, particularly due to resource constraints compared to larger banks. These smaller institutions typically operate with limited staff and budgets, which can make it difficult to keep up with the extensive regulatory requirements imposed on them.

Larger banks generally have more resources to dedicate to compliance, including specialized personnel, advanced technology, and comprehensive training programs. In contrast, community banks may struggle to allocate sufficient resources toward compliance initiatives, which can increase the risk of non-compliance and potential penalties. This challenge is further compounded by the complexity of regulations that all banks must adhere to, requiring community banks to be especially diligent and innovative in how they manage compliance within their constraints.