Articles and Speeches
The Impact of Dodd-Frank and Capital Requirements
on Commercial Lending
August 4, 2016
Reprinted with permission from Lexis Practice Advisor Journal
THE DODD-FRANK WALL STREET REFORM AND CONSUMER Protection Act (Dodd-Frank), 111 P.L. 203, addresses commercial lending in two of its titles. First, and most prominently, Title I of the statute deals with risks to the stability of the financial system through more stringent regulation of bank holding companies with more than $50 billion in assets. As something of a shorthand, these companies are referred to as “systemically important.” The more stringent regulations are known as “enhanced prudential standards” and cover a variety of bank operations including commercial lending. Second, Title VI makes a number of changes to bank-level regulations that cover commercial loans. The discussion below first focuses on the Title I provisions and then Title VI.