Quantifying the costs of additional regulation on community banks
In this Economic Policy Paper, we quantify the cost of increased regulation on community banks. We do so by modeling the impact of new regulatory costs as the hiring of additional staff, resulting in higher total compensation and lower profitability. We then analyze the changes in the distribution of community bank profitability.
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Paper provided by Federal Reserve Bank of Minneapolis in its series Economic Policy Paper
Date of creation:
2013Date of revision:
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Postal: 90 Hennepin Avenue, P.O. Box 291, Minneapolis, MN 55480-0291
Phone: (612) 204-5000
Web page: http://minneapolisfed.org/
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