To Dodd-Frank and Back: Regulatory Burden and the Economic Growth, Regulatory Relief, and Consumer Protection Act.

The article examines the regulatory burden imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and the regulatory relief provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) on bank-holding companies (BHCs), with a focus on community banks—defined as institutions with $10 billion or less in total assets. Using data from the Federal Reserve's Consolidated Financial Statements for Holding Companies (FR-Y9C) from 1991 to 2019, the study analyzes four performance measures: expenses per assets (including non-interest expenses), loans per assets, loans per employee, and pre-tax return on assets. Findings indicate that Dodd-Frank generally reduces loans per assets and loans per employee while increasing non-interest expenses, especially for smaller BHCs, but does not significantly affect return on assets. Conversely, EGRRCPA provides measurable regulatory relief, notably decreasing non-interest expenses for mid-sized community BHCs and increasing return on assets for all but the smallest BHCs, with the magnitude of relief rising with institution size. The study highlights that subsequent Dodd-Frank mortgage and capital rules encourage BHCs to shift toward higher-yielding loans, partially offsetting compliance costs.