With higher capital and liquidity requirements for banks, U.S. economic and job growth can expect to take a hit, according to a study by Oxford Economics released by the Clearing House Association.

"Our study's findings clearly demonstrate the need for any regulatory program to be carefully structured to avoid any unintended consequences to economic growth and employment," says Adam Slater, senior economist at Oxford Economics.

The study finds there are three big factors that could affect bank behavior and the economy. These include higher capital levels that lead to growing bank lending rates, requirements to hold more liquid assets, and the reduction of risk-weighted assets to reach higher minimum capital ratios.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.