Dodd-Frank Bill will drive up compliance costs, reduce profits and could hurt lending, WI bankers say
Bankers recently surveyed by the Wisconsin Bankers Association say the recently enacted Dodd-Frank Bill will likely result in incur higher compliance costs and lower revenue levels for many banks and could force them to charge for services that are currently provided for free.
According to the responses of 114 banking professionals, the new federal financial regulations could limit lending and slow economic recovery. Many bankers also believe that smaller community banks will be more adversely affected than larger regional or national banks.
The Senate may act on the Dodd-Frank Bill soon. The House approved the bill on June 30.
About 77 percent of the bankers surveyed rated the economy as fair, while 19 percent said it is poor – and 78 percent of the bankers believe it will stay the same for the next six months. However, about 56 percent of the bankers surveyed believe that the economy has hit bottom and is beginning to improve.
“Bankers say commercial lending demand remains low because businesses are uncertain about the strength of the economic recovery,” said Kurt R. Bauer, WBA president and CEO.