Banking institutions need fewer archaic rules. (Cleveland's Federal Reserve Bank)

Banking institutions need fewer archaic rules

Citing a need for drastic change, Cleveland's Federal Reserve Bank president said basic regulatory reforms are needed to encourage a more resilient and stable financial services industry.

W. Lee Hoskins, a keynote speaker at last weeks's Financial Institutions Conference in Hershey, Pa., told regional CPAs that the industry must allow market forces to guide it.

"Markets provide us with the best allocation of resources, and therefore the most efficient solution," Hoskins said.

Although fears of instability are often the reason for regulations, Hoskins said market solutions should lead to greater …