How Are Small Banks Faring Under Dodd-Frank?

Peirce, Hester; Robinson, Ian; Stratmann, Thomas

doi:10.2139/ssrn.2435206

Cited by 34 publications

(22 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Deregulatory policies allowed banks to grow in size, serve larger geographic regions, and take on additional risks (Federal Deposit Insurance Corporation, 1997), precipitating banks' divestment from local communities in favor of serving more profitable communities (Federal Deposit Insurance Corporation, 1997; Apgar and Herbert, 2006). For example, from 1985 to 2013, the number of banks and savings institutions that served higher‐income communities increased by 40%, while the number of small banks (i.e., those with less than $100 million in assets) often located in lower‐income communities declined by 85% (Peirce et al ., 2014).…”

Section: A History Of Redlining In Financial Servicesmentioning

confidence: 99%

Digital redlining and the fintech marketplace: Evidence from US zip codes

Friedline

Chen

2021

Journal of Consumer Affairs

View full text Add to dashboard Cite

The rise of digital technologies enables new manifestations of racialization in financial services with marketplace implications. Akin to redlining in the lending market, racialization in the spatial availability of digital technologies—including financial technologies or “fintech”—may raise the costs of banking in black and brown communities. This paper investigates associations between communities' racial makeup and rates of fintech by leveraging 2015 Esri Business Analyst Market Potential data from the universe of high‐poverty zip codes. Poor black and brown communities experience a form of digital redlining by having the lowest fintech rates. Every percentage increase in a community's black population was associated with an 18% decrease in their rate of high‐speed internet access, 1% decrease in smartphone ownership, 12% decrease in online banking, and 3% decrease in mobile banking. Relationships were opposite for communities with increasing white populations where whiteness attracts higher rates of fintech, even amidst high poverty.

show abstract

Section: A History Of Redlining In Financial Servicesmentioning

confidence: 99%

Digital redlining and the fintech marketplace: Evidence from US zip codes

Friedline

Chen

2021

Journal of Consumer Affairs

View full text Add to dashboard Cite

show abstract

“…Введение контрциклического буфера также повлекло за собой сокращение предложения кредитов [9]. Возросшее вследствие принятия закона Додда-Франка регулятивное бремя значительно увеличило издержки маленьких банков и заставило их сократить линейку предлагаемых ипотечных кредитов [10].…”

Section: тенденции посткризисного финансового регулирования в сшаunclassified

Tightening Financial Regulation: The Impact on the Credit Cycle in the USA

Podrugina

2019

Mir novoj jekonomiki

View full text Add to dashboard Cite

The credit cycle is one of the most important elements of the business cycle. Credit expansion after the crisis is one of the key ways of economic recovery. The tightening of financial regulation in response to the crisis of 2007–2008 largely slowed down the credit expansion phase and was reflected in an abnormally prolonged phase of credit contraction for the non-financial private sector. The normal course of the credit cycle was disrupted by the increased demands of Basel III and the reform of theUSAfinancial system. The credit cycle after the crisis of 2007–2008 differs from previous crises: the recovery of credit activity was slower; the volume of credit to the non-financial private sector has not recovered even now. The article presents a comparative analysis of the behaviour of credit after crises from the point of view of the duration of recovery. In this article, the author presents the results of the research of the nature of the incident called “the credit paralysis” based on Minsky’s hypothesis of financial instability and Crotty’s theory of the endogenous formation of credit standards. It is assumed that bank credit standards are set in accordance with the level of macroeconomic variables — the level of GDP, interest rates, the volume of loans taken. Using the vector autoregressive model, the author analyzed the change in credit activity in response to changes in credit standards, as well as the process of forming credit standards depending on macroeconomic indicators. Therefore, the author concluded that the excessive increase in credit standards due to the introduction of Basel III requirements in response to the crisis that violated the normal course of the credit cycle. Based on the author’s econometric study, the author built a stylized model of theUSAcredit cycle, taking into account the influence of specific factors of the crisis of 2007–2008: pre-crisis financial innovation and post-crisis tightening of financial regulation.

show abstract

“…According to them, the Dodd-Frank which was claimed to be targeted to the end of 'too big to fail' institutions, has finished to hamper households and small-and medium-sized community financial institutions. In fact, instead of ending 'too big to fail,' Dodd-Frank created 'too small to succeed' (Lux and Greene, 2015;Pierce et al 2014;Rapoport, 2014;Brewer and Jagtiani, 2013). This is because the largest Wall Street firms were the beneficiaries rather than the victims of Dodd-Frank: the law has both cemented their status as 'too big to fail' and has conferred an advantage on firms with the size and scale to absorb the complex new regulatory mandates (Prabha and Wihlborg, 2014).…”

Section: Critics To the Dodd-frank Act And Its Future Under The Trumpmentioning

confidence: 99%

A Journey Through the History of Commodity Derivatives Markets and the Political Economy of (De)Regulation

Algieri

2018

SSRN Journal

View full text Add to dashboard Cite

The CENTER FOR DEVELOPMENT RESEARCH (ZEF) was established in 1995 as an international, interdisciplinary research institute at the University of Bonn. Research and teaching at ZEF address political, economic and ecological development problems. ZEF closely cooperates with national and international partners in research and development organizations. For information, see: www.zef.de. ZEF-Discussion Papers on Development Policy are intended to stimulate discussion among researchers, practitioners and policy makers on current and emerging development issues. Each paper has been exposed to an internal discussion within the Center for Development Research (ZEF) and an external review. The papers mostly reflect work in progress. The Editorial Committee of the ZEF-DISCUSSION PAPERS ON DEVELOPMENT POLICY includes Joachim von Braun (Chair), Christian Borgemeister, and Eva Youkhana. Chiara Kofol is the Managing Editor of the series.

show abstract

How Are Small Banks Faring Under Dodd-Frank?

Cited by 34 publications

References 33 publications

Digital redlining and the fintech marketplace: Evidence from US zip codes

Digital redlining and the fintech marketplace: Evidence from US zip codes

Tightening Financial Regulation: The Impact on the Credit Cycle in the USA

A Journey Through the History of Commodity Derivatives Markets and the Political Economy of (De)Regulation

Contact Info

Product

Resources

About