Details

Autor(en) / Beteiligte

• Chami, Ralph
• Cosimano, Thomas F
• Kopp, Emanuel A
• Rochon, Celine

Titel

Dodd Frank Act versus Financial Choice Act: Which Banks Benefit?

Ist Teil von

• Banking & Financial Services Policy Report, 2018-01, Vol.37 (1), p.3-5

Ort / Verlag

Gaithersburg: Aspen Publishers, Inc

Erscheinungsjahr

2018

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• This article compares the current regulatory capital requirements under the Dodd-Frank Act (DFA) and the 10 percent leverage ratio, as proposed by the U.S. Treasury and the U.S. House of Representatives' Financial CHOICE Act (FCA). We argue that large banks are much closer to the proposed leverage threshold and, therefore, are more likely to gain from regulatory relief. Small banks, in contrast, would opt to stay under DFA. We also identify a potential moral hazard problem under the FCA, where banks are likely to increase the riskiness of their asset portfolio, with unintended effects on financial stability and to the Basel Accord.