Fed's George Says Financial System Has Become More Stable

The transcript discusses the impact of the Dodd-Frank Act on the financial system, highlighting increased stability due to more capital and regulation. However, it notes that the goal of ending 'too big to fail' has not been fully achieved. The discussion covers the dual nature of the banking system, with both community banks and large institutions, and the need for targeted regulation. It also addresses the argument that higher capital requirements reduce lending, suggesting that capital is a funding source. The impact of regulations on small banks and their lending practices is also examined, with a call for better calibration of rules to fit different business models.

What impact do the regulations have on smaller banks compared to larger banks according to the speaker?

What suggestions does the speaker make regarding the calibration of regulations for different banking models?