The Dodd-Frank financial regulation law was passed three years ago this week. As Diane Katz notes, the law’s major accomplishment seems to have been to drive up fees and dry up credit:
As of July 1, nearly 63 percent of the rulemaking deadlines have been missed. Preliminary proposals have not been prepared for more than one-third of the rules still outstanding.
Dodd–Frank’s onerous regulatory demands are driving up banking fees, and regulatory uncertainty is prompting banks to be cautious about extending credit. The House Financial Services Committee estimated that the Dodd–Frank regime would impose at least $27 billion in new assessments on financial firms and require more than 2.2 million annual labor hours—the equivalent of 56,516 work weeks—to comply with just the first 10 percent of rules issued.
Consider the effect on checking accounts, for example. Only 39 percent of banks in 2012 offered a checking account with no minimum balance requirement and no monthly fee, compared to 45 percent in 2011 and 76 percent in 2009. Meanwhile, the minimum account balance needed to avoid a monthly fee has nearly doubled in the past two years, to $6,118. [Internal citations omitted.] [The Heritage Foundation, July 19]