Bench Memos

Dodd-Frank and Small Banks

The Florida Chamber of Commerce Foundation is out with its 2012 Small Business Lending Survey of community banks and credit unions. The survey provides more evidence that Dodd-Frank is hurting small banks. A few highlights:  

  • “Ninety-six percent of community banks and credit unions expect to spend considerably more time and money on compliance with new federal regulations over the next three years.”

  • “Sixty-four percent of respondents stated that they will very likely or likely need to hire additional compliance staff over the next three years.” For many banks, this will entail doubling their compliance staff.

  • “[Sixty-four] percent . . . of community banks and credit unions said small business lending over the next three years will be negatively affected by the Dodd-Frank Act. Further, 72 percent said that the availability of customer services would be negatively impacted by the Dodd-Frank Act in the near future.” Additionally, “69 percent of all respondents believe it will hinder their internal business development in the future.”

I also recommend Representative Bachus’s Washington Times op-ed, which details how Dodd-Frank failed to end bailouts and too big to fail.  


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