What changes could be on the horizon for the banking industry under a Trump Administration?
BNC Bank President & CEO, Rick Callicutt, shares three areas that could see reform
President and CEO of BNC Bank, Rick Callicutt, says he is cautiously optimistic as January 20, 2017 nears. Below he shares the top three areas that could affect the financial industry under a Trump Administration.
As one of the most regulated parts of the economy, the financial industry could see big changes under President Trump. The President-elect has vowed to “dismantle” the Dodd-Frank Act, a financial reform legislation passed in 2010 in response to the financial crisis of 2008. This could also result in big changes to the Consumer Financial Protection Bureau, the financial watchdog agency created by the act.
Corporate tax reform could provide a boost to small businesses, with the intention of bringing jobs back to the United States. According to Trump’s campaign website, he also plans to cut personal taxes and decrease the amount of tax brackets from seven to three. The goal of this reform would be to unleash economic growth and allow for more consumer spending.
Higher Interest Rates
With Trump’s platform to cut taxes, increase spending and rollback crisis-era regulations, a prediction for higher interest rates is on the horizon. This could put lenders in a more favorable position as they have weathered a low-interest rate environment for years, which has abated many bank’s revenues and profits.