A recent survey by the Florida Chamber of Commerce Foundation may bolster claims by Jeff Atwater, Florida’s CFO, that the 2010 Dodd-Frank Act negatively impacted community banks.
The survey, conducted jointly by Atwater’s office and the chamber foundation, revealed that a majority of credit unions and community banks will need to double the number of employees dedicated to compliance over the next three years, though lending will increase very little, Sunshine State News reports.
Sixty-four percent of community financial institutions said that small business lending will be negatively affected by the law, while 96 percent of the institutions said that they expect to spend more time and money on compliance related to Dodd-Frank.
“In the federal government’s attempt to crack down on bad lending practices, small community lenders have become the collateral damage, drowning in ever-increasing compliance costs,” Atwater said, according to Sunshine State News. “Our survey found that lending to small businesses consequently has been stifled, restricting access to capital. And with businesses’ inhibited ability to hire, Florida workers are ultimately paying the price.”
Atwater, along with other state leaders, targeted federal financial laws like Dodd-Frank and urged the repeal of certain state regulations.
Dale Brill, the president of the Chamber Foundation, said that the survey results demonstrate the need to re-evaluate state and federal financial regulations.
“Fears have been confirmed that government is choking capital markets rather than reviving them,” Brill said, Sunshine State News reports.