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©2000 kluwer academic publishers. Manufactured in the netherlands. The costs of implementing regulatory changes: the truth in savings act.
| Content Provider | CiteSeerX |
|---|---|
| Author | Elliehausen, Gregory Lowrey, Barbara R. |
| Abstract | Although the cost of banking regulation has been a controversial issue for many years, little empirical evidence is available. This study provides new evidence on the effect of the amount of required changes on start-up compliance costs, using data from a survey of the costs of implementing the Truth in Savings Act. The finding, that start-up compliance costs were insensitive to the extent of changes required to implement the regulation, has important implications for regulatory policy. It suggests that a general requirement to alter an infrequent practice may impose nonnegligible costs on all banks, not only those banks that must make substantive changes in their practices. This finding argues against a policy of making frequent minor revisions in regulations. Instead, a policy of delaying revisions until some number have been accumulated and then making infrequent major revisions of regulations may reduce implementation costs by allowing banks to exploit economies of changing practices. |
| File Format | |
| Access Restriction | Open |
| Content Type | Text |
