Too Many Bank Regulations Are Counterproductive

by Edward O'Brien 0

History has demonstrated that thoughtful legislation can accelerate and even pivot the direction in which our country’s economy moves. However, we are reminded frequently that unintended consequences can arise out of the best of intentions. Not only do the benefits often not reach their intended recipients but, at times, previously unforeseen issues emerge as a result.

As is noted in the referenced article, there have been several recent examples of unintended consequences associated with well-meaning, yet potentially harmful results of some bank regulations. Examples cited include mortgage, student loan, and small business lending regulations, which can inhibit access to needed funding in these, and other, areas. And while some oversight is likely good for the industry and the public, a thorough vetting of possible outcomes should be undertaken when assessing potential regulatory actions.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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