The Impact of the Dodd-Frank Act on Small Banks

Alqatawni, Tahsen (2013): The Impact of the Dodd-Frank Act on Small Banks. Published in: Social Science Research Network , Vol. 10, No. 2347812 (30 October 2013): pp. 1-10.

Abstract

The Dodd-Frank Act is single longest bill ever passed by the U.S… The Dodd-Frank Act passed in reply to the latest financial meltdown, which applies to prevent further fraud and abuse in the markets, also geared toward protecting consumers with regulations like keeping borrowers from abusive lending conditions and mortgage practices by lenders. Dodd-Frank regulatory requirements set too many restrictions on local lenders and appraisers and that the Act created for large banks "too-big-to-fail”. However, the small banks, which do not fit neatly into standardized financial modeling, will face unintended consequences, as increased operations costs, which lead to reduced income and limited potential growth. The Act created enormous difficulties on small banks, which has little to do with the financial crisis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Dodd-Frank Act , Law and Compliance , financial regulation
• Subjects: G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy ; Liquidation; G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation; K - Law and Economics > K2 - Regulation and Business Law; K - Law and Economics > K2 - Regulation and Business Law > K22 - Business and Securities Law; K - Law and Economics > K2 - Regulation and Business Law > K23 - Regulated Industries and Administrative Law; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General

References

Wilmarth Jr, A. E. (2010). The Dodd-Frank Act: A flawed and inadequate response to the Too-Big-to-Fail Problem. Oregon Law Review, 89, 951. Retrieved from http://law.uoregon.edu/org/olrold/89_3.php

Seligman, J. (2011). Key Implications of the Dodd-Frank Act for independent regulatory agencies. Wash. UL Rev., 89, 1. Retrieved from http://heinonline.org/HOL/LandingPage?collection=&handle=hein.journals/walq89&div=4&id=&page=

Rose, P., & Walker, C. J. (2013). Dodd-Frank regulators, cost-benefit analysis, and agency capture. Stanford Law Review Online, 66, 9-16.Retrieved from http://works.bepress.com/christopher_walker/15/

Peirce, H. (2013). Regulatory burdens: the impact of Dodd-Frank on community banking. Mercatus Center. Retrieved from http://mercatus.org/publication/regulatory-burdens-impact-dodd-frank-community-banking

Alqatawni, T, (2013). Unethical dilemmas in derivatives practice: global financial crisis. SSRN. http://dx.doi.org/10.2139/ssrn.2271445

Liberty of Congress, (2010). Dodd-Frank Wall Street Reform and Consumer Protection Act, The Library of Congress, July 21, 2010. Retrieved from http://thomas.loc.gov/cgi-bin/bdquery/z?d111:H.R.4173:#>

Saltzman, D, (2013). The impact of the Dodd-Frank Act on small business. The Business Monthly, Retrieved from http://www.bizmonthly.com/the- impact-of-the-dodd-frank-act-on-small-business/

Wallison, P. J. (2010). The Dodd-Frank Act: Creative Destruction, Destroyed. Wall Street Journal, August 31. Retrieved from http://online.wsj.com/article/SB10001424052748703369704575461714115902100.ht

Wallison, P. (2011). Will (Should) Dodd-Frank Survive?. Networks Financial Institute Policy Brief. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1783916

Ramirez, S. A. (2011). Dodd-Frank as Maginot line. Chap. L. Rev., 15, 109. Retrieved from http://works.bepress.com/steven_ramirez/20/

Marsh, T. D., & Norman, J. W. (2013). The impact of Dodd-Frank on community banks. American Bankers Association. Retrieved from http://www.aba.com/SearchCenter/pages/results.aspxk=The%20impact%20of%0Dodd Frank%20on%20community%20banks

McEnroe, J. E., & Sullivan, M. (2013). An Examination of the Perceptions of Auditors and Chief Financial Officers of Various Regulations Introduced by the Dodd–Frank Financial Reform Bill. Advances in Public Interest Accounting, 16, 187-220. doi: 10.1108/S1041-7060(2013)0000016010

Kroszner, R. S., & Strahan, P. E. (2011). Financial regulatory reform: Challenges ahead. The American Economic Review, 101(3), 242-246. Retrieved from http://www.ingentaconnect.com/content/aea/aer/2011/00000101/00000003/art00043