Lending and risk controls for BHCs after the Dodd–Frank act
研究了《多德-弗兰克法案》对复杂银行控股公司信用风险行为的影响，发现该法案反而促使这些银行增加信用风险，可能源于贷款质量下降和风险管理弱化。
Abstract We investigate the impact of the Dodd–Frank Act (DFA) on the credit risk behavior of complex bank holding companies (BHCs). Specifically, we assess the effectiveness of the DFA in reducing the credit riskiness of complex banks. Consistent with the moral hazard hypothesis, we find that complex BHCs affected by the DFA increase their credit risk. We argue that possible explanations are that BHCs decreased their lending portfolio quality, loan monitoring, and strength and independence of the risk management function after the DFA. The results are robust to endogeneity concerns, different sample selection criteria, various model and treatment specifications, and placebo tests.