Derivatives and deregulation: Bank risk in the wake of the Economic Growth, Regulatory Relief, and Consumer Protection Act
(2024) NEKH03 20232Department of Economics
- Abstract
- This project aims to research to which extent the 2018 rollback of the Dodd-Frank Act has affected the derivative trading patterns of medium-sized banks in the U.S. and whether any conclusions can be drawn regarding changes in their risk profiles in regards to derivative markets given the hypothesis that institutions subject to regulation change would increase their risk exposure. To this end, trading data on three derivative categories, Interest Rate, Foreign Exchange and Credit, acquired from financial reports published by the U.S. Federal Financial Institutions Examination Council (FFIEC) has been analyzed through regression models with fixed effects over a time period of 2015-2020. The findings of this report do provide evidence in... (More)
- This project aims to research to which extent the 2018 rollback of the Dodd-Frank Act has affected the derivative trading patterns of medium-sized banks in the U.S. and whether any conclusions can be drawn regarding changes in their risk profiles in regards to derivative markets given the hypothesis that institutions subject to regulation change would increase their risk exposure. To this end, trading data on three derivative categories, Interest Rate, Foreign Exchange and Credit, acquired from financial reports published by the U.S. Federal Financial Institutions Examination Council (FFIEC) has been analyzed through regression models with fixed effects over a time period of 2015-2020. The findings of this report do provide evidence in support for the hypothesis and suggest a positive relationship between the EGRRCPA and increased risk for Category IV financial institutions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9147583
- author
- Nilsson, Nils Dexter
- supervisor
- organization
- course
- NEKH03 20232
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- keywords
- Dodd-Frank, Derivatives, Financial regulations, Banks, Trading, Regression Analysis, Panel Data, Difference-In-Difference Analysis
- language
- English
- id
- 9147583
- date added to LUP
- 2024-04-16 09:29:50
- date last changed
- 2024-04-16 09:29:50
@misc{9147583, abstract = {{This project aims to research to which extent the 2018 rollback of the Dodd-Frank Act has affected the derivative trading patterns of medium-sized banks in the U.S. and whether any conclusions can be drawn regarding changes in their risk profiles in regards to derivative markets given the hypothesis that institutions subject to regulation change would increase their risk exposure. To this end, trading data on three derivative categories, Interest Rate, Foreign Exchange and Credit, acquired from financial reports published by the U.S. Federal Financial Institutions Examination Council (FFIEC) has been analyzed through regression models with fixed effects over a time period of 2015-2020. The findings of this report do provide evidence in support for the hypothesis and suggest a positive relationship between the EGRRCPA and increased risk for Category IV financial institutions.}}, author = {{Nilsson, Nils Dexter}}, language = {{eng}}, note = {{Student Paper}}, title = {{Derivatives and deregulation: Bank risk in the wake of the Economic Growth, Regulatory Relief, and Consumer Protection Act}}, year = {{2024}}, }