The report, conducted by the Georgia Public Policy Foundation and Competitive Enterprise Institute, revealed that the Durbin Amendment, a provision of Dodd-Frank that caps the interchange or “swipe” fee — the amount a bank charges a merchant to process a debit transaction – has cost banks $15 billion.
“This is a bad time for Washington to burden businesses with more regulations,” President Kelly McCutchen of the GPPF said, according to BankingMyWay. “The Durbin Amendment has already hurt small and large banks, and it isn’t helping consumers. It should be repealed before it does any more harm to the businesses that rely on them for loans and lines of credit to make payroll, open new locations and hire more employees.”
The report revealed that Georgia, which has struggled to deal with a tumultuous housing market, has been hit especially hard by the recent financial crisis. The average unemployment rate in the state is nine percent. Additionally, the Federal Deposit Insurance Corp. has closed 80 banks in Georgia since 2008.
“Without healthy banks with money to lend, it will be much harder for local entrepreneurs to find the funding they need to grow their business,” John Berlau, an economist and author of the study, said, BankingMyWay reports. “Georgia’s banks were already weakened by the recent, harsh recession. New regulations coming out of Washington, like the Durbin Amendment, are making it even harder for the banks to recover and do their part to kick-start the state’s economy.”