Costs of Compliance with the Dodd-Frank Act

Baker Institute Issue Brief no. 09.06.19

4 Pages Posted: 25 Sep 2019

See all articles by Thomas L. Hogan

Thomas L. Hogan

Rice University - Baker Institute for Public Policy

Date Written: September 6, 2019

Abstract

The Dodd-Frank Act of 2010 roughly doubled the number of regulations applied to U.S. banks. In a recent paper, my coauthor Scott Burns and I estimate the effects of the Dodd-Frank Act on U.S. bank expenses. This brief summarizes three key findings of that study: (1) Banks’ total noninterest expenses increased by an average of more than $50 billion per year after the passage of Dodd-Frank. (2) Increases occurred both in salary expenses from hiring new workers and in non-salary expenses such as auditing, consulting, and legal fees. (3) Smaller banks were disproportionately affected by larger increases in salary and non-salary expenses.

Suggested Citation

Hogan, Thomas L., Costs of Compliance with the Dodd-Frank Act (September 6, 2019). Baker Institute Issue Brief no. 09.06.19, Available at SSRN: https://ssrn.com/abstract=3454581

Thomas L. Hogan (Contact Author)

Rice University - Baker Institute for Public Policy ( email )

6100 Main Street, MS-40
Houston, TX 77005
United States

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