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Regulations
Nevertheless, the study notes that banks have paid heavily for the
problems they created and face a tough landscape ahead.
"Managing these costs is a major burden for banks, requiring the
creation of a strong non-financial-risk framework to avoid errors of the
past," the Boston Consulting authors said.
Among the biggest obstacles to growth is a set of regulations that has
averaged 200 revisions a day since 2011, the year Congress adopted
the Dodd-Frank reforms. (Diagram 10) (10)
Diagram 10: Regulatory Change
The legislation sought to reduce the possibility that institutions could
become too big to fail and require the costly bailouts necessitated during
the crisis. Despite President Trump’s pledge to roll-back the Dodd-Frank
Act it would appear, according to the Boston Consulting Group (BCG)
Report, that regulatory control is here to stay.
