The Dodd-Frank Act and Small Bank Creation

Kim J. Ruhl

Executive Summary:

In the aftermath of the financial crisis, Congress passed the Dodd-Frank Act which increased capital requirements and regulation of banks.  Following the Act, there has been a reduction in the creation of small banks, who have faced a large burden under the Act. Small banking is most important in poorer, rural areas, which suggests that these areas would be most affected by changes in the health of the small-bank sector.

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