Chief Financial Officer Jeff Atwater, who has described the Dodd-Frank Act as horrific on community banks, now has a survey from the Florida Chamber of Commerce Foundation to bank up his contention.
The 2012 Small Business Lending Survey -- jointly run by the chamber foundation and Atwaters office -- found a majority of community banks and credit unions expect they will need to double employees handling compliance with the act over the next three years, while showing little increase in lending.
In the federal governments attempt to crack down on bad lending practices, small community lenders have become the collateral damage, drowning in ever-increasing compliance costs, Atwater stated in a release with the survey.
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.
Dodd-Frank, named after sponsors Sen. Christopher Dodd, D-Conn., and Rep. Barney Frank, D-Mass., has been a target of Atwaters as he and other state leaders have pushed for a revamping of federal financial laws and identifying state regulations that need to be repealed.
Dodd-Frank, signed into law in July 2010, has been considered a harsh measure following the late 2000 recession that has overreached in restricting financial institutions and establishing government partnerships with large Wall Street institutions.
Among the survey findings:
Ninety-six percent of community banks and credit unions expect to spend more time and money on compliance with new federal regulation over the next three years.
Sixty-four percent of community banks and credit unions said their lending to small businesses over the next three years will be negatively affected by the Dodd-Frank Act.
Seventy-two percent of community banks and credit unions expect customer service will negatively impacted.
The email solicited survey was sent to senior management at Florida-based banks and credit unions between June 15 and Aug. 10.
Chamber Foundation President Dale Brill declared the survey results show that the need to re-evaluate both state and federal fiscal regulations is warranted.
Fears have been confirmed that government is choking capital markets rather than reviving them, Brill stated in the release.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
