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The Dodd–Frank Act’s non-uniform regulatory impact on the banking industry

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  • Burak Dolar

    (Western Washington University)

  • Ben Dale

    (University of Washington)

Abstract

The Dodd–Frank was signed into law in 2010 in response to the financial crisis of 2008 and the ensuing Great Recession. The changes brought about by the Dodd–Frank Act impact, directly and indirectly, all institutions operating in the banking industry. In this paper, we study the relative impact of increased compliance costs across banks of different sizes. Analyzing a dataset comprising the entire population of commercial banks and thrifts from 2003 to 2016, the empirical findings suggest that the Act’s cost of compliance has fallen more heavily on small institutions relative to their large competitors, thus producing an intra-industry redistribution of wealth.

Suggested Citation

  • Burak Dolar & Ben Dale, 2020. "The Dodd–Frank Act’s non-uniform regulatory impact on the banking industry," Journal of Banking Regulation, Palgrave Macmillan, vol. 21(2), pages 188-195, June.
    • Handle: RePEc:pal:jbkreg:v:21:y:2020:i:2:d:10.1057_s41261-019-00106-z
    DOI: 10.1057/s41261-019-00106-z
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    References listed on IDEAS

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