By capping the fees banks and credit unions can charge for debit transactions, the Durbin Amendment is hurting Georgia’s economic recovery by preventing its financial institutions from lending, a new study says.
According to the Competitive Enterprise Institute for the Georgia Public Policy Foundation, the Durbn Amendment will cost Georgia’s banks roughly $8 billion in unrealized revenues — plus another $7 billion in compliance costs, it estimates. Banking is already under stress in Georgia; since 2008, the Federal Deposit Insurance Corp. has closed 80 banks there, more than any other state in the country.
The CEI’s full study on the impact of regulation on Georgia banking is available online.
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