Tom Page, the president of Emprise Bank, expressed confidence on Tuesday in the health of Kansas’s banking industry, saying that banks are able to meet the needs of community businesses despite Dodd-Frank.
“The banks in Kansas are very well capitalized, excessively capitalized,” Page said, according to Wichita Business Journal.
Page said, however, that capital is not being used efficiently, as businesses fear expansion due to a growing regulatory burden under the 2010 Dodd-Frank Act, adding that the law will have “horrendous” consequences.
Additionally, Page said that the Durbin Amendment “basically drove a stake in free checking accounts,” Wichita Business Journal reports.
Page said that community banks would likely be “collateral damage” as a result of the response to the 2008 financial crisis, saying that regulations before Dodd-Frank were “descriptive,” but after the financial crisis, regulations are now “prescriptive.”
While 85 percent of Kansas banks have seen profits fall over the last 20 years, Page said banks don’t need more deposits, as capital levels would be required to increase as well. Page said that if capital isn’t being disbursed due to concerns about the economy or the growing regulatory burden, it won’t provide the returns desired by shareholders.