Fed’s Dodd-Frank rollbacks have boosted competitiveness of smaller banks, senior official says

7 June 2019 3:21pm
The US Federal Reserve’s rollbacks of Dodd-Frank Act requirements for small and regional banks that don’t pose financial stability threats has opened up opportunities for them in the marketplace, Fed general counsel Mark Van Der Weide said.

“I think one of the effects of the tailoring regime is to help the smaller firms, the medium-sized firms compete with larger firms,” he told an industry conference* this week. “I would hope as we tailor more and more of our regulatory framework, we’ll see more and more smaller and medium-sized firms able to not have the same sort of regulatory headwinds to competition.”

The Fed under Chairman Jerome Powell has cast its plans for capital, stress-test, liquidity and leverage relief in terms of targeting financial-stability requirements at banks presenting the greatest risk.