The Reform And Consumer Protection Act ( Dodd Frank )

Experts are predicting the government will not maintain the current levels of spending resulting in long-term deficit increases. Regulation: Financial legislation has always played a crucial role in the safety and soundness of the banking industry. Since the 2008 financial crisis, mostly caused by loose lending practices and lack of credit standards, bank regulation pressures have increased considerably. The increased regulatory burden is playing a toll on community financial institutions who cannot keep up with the overhead cost it takes to meet the new regulations. It is frustrating community bankers since most new regulation was written for the â€Å"too big to fail† banks as they were the majority driver of the subpar lending practices.†¦show more content†¦There are a number of existing consumer protection laws that were handed over to the CFPB including the Truth-in-Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act and the Fair Debt Collection Practices Act. The CFPB will ensure consumers receive simple and accurate information with applying for a mortgage, credit card, persona l loan and any other financial products and services. The biggest criticisms about the CFPB are one, they follow the one-size-fits-all rule when writing regulation and two, have all the control with no one overseeing them. Basel III is another law implemented that will place additional strain on Banks. Basel III is a set of reform measures, developed by the Basel Committee on Banking Supervision. It is a framework used to strengthen risk management and a banks ability to absorb shocks from financial and economic stress. Basel III implemented new tier 1 capital requirements, new minimum leverage ratio requirements and new liquidity coverage ratios requirements. Community banks enjoyed a small victory by delaying the final implementation requirements for Basel III to March 31, 2019. ECONOMIC FORECAST – 18 MONTHS America’s short term economic future could be in for a series of roller coaster peaks and troughs. There are 3 major factors to take into consideration over the next 18 months that could severely impact the economic