The Dodd-Frank Act passed by Congress after the last recession was intended to reduce some of the moral hazard problems discussed in Chapter 10 by placing more restrictions on the banks. Part of this act was recently eased by Congress, but this revision was largely focused on the rules that apply to the largest banks. The main restrictions of Dodd-Frank are still in place, and some banking experts argue that the banks have to make money in other ways, and they would likely raise their fees for other services (e.g., monthly service fees, ATM access fees, and non-sufficient fund fees). One key problem with higher banking fees is that they tend to be paid by bank customers with lower income or wealth.
In the past ten years, our access to banking services has changed due to electronic alternatives like Apple Pay or Venmo. So, if banks have raised fees due to Dodd-Frank, we now may be able to avoid the fees by using electronic alternatives to traditional banking services.Do you pay much attention to bank service fees? Do increases in these fees cause you to change your banking behavior? Would you simply switch to an electronic alternative?
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