The vice-chair of a coalition of midsize lenders said the rollback of Dodd-Frank regulations will save his New York-based bank “tens of millions of dollars” in regulatory costs.
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“That’s going to be good for consumers because we’re going to be financing companies, and it’s good for the economy,” Scott Shay, the chair of Signature Bank and vice-chair of the Mid-Size Bank Coalition of America, told Liz Claman during a FOX Business interview on Thursday.
Small and midsize banks are looking toward new growth opportunities after President Donald Trump signed a bipartisan bill scaling back some regulations imposed in the wake of the 2008 financial crisis.
Many experts believe those banks have been unduly burdened by the Obama-era package of rules known as Dodd-Frank. The rollback eases regulation on some big banks, grants consumers the right to free credit freezes and provides relief to smaller banks by softening the Volcker Rule, which prohibits banks from making their own investments with customers’ deposits.
By making it easier for smaller banks to compete, Shay said there would be increased competition in the industry. Since Dodd-Frank was passed in 2010, 45% of checking accounts in the U.S. were opened by just three banks, he said.
“We’re going to be able to do more for the American consumer,” he said.