The next phase of Trump's banking reforms won't be so easy

Expect a shift in how your lending partners operate as the next phase of banking reform moves from quick executive actions to more complex legislative and agency battles. While the administration started fast, future changes to capital requirements and oversight will take longer to implement. For retailers, this means the 'easy wins' in deregulation are likely behind us, and we are entering a period of slower, more debated policy shifts. This matters for your business because banking regulation directly impacts how much credit your lenders can extend to your customers. If regulators struggle to reach an agreement on capital standards, lenders may remain cautious with their balance sheets. You should anticipate that while the overall environment remains pro-business, specific improvements to credit availability or lower borrowing costs for consumers may not materialize as quickly as initially hoped. Keep a close eye on your secondary and tertiary lending partners, as they are often the most sensitive to these regulatory pivots. Stable rules usually lead to more predictable financing programs for your storefront, but the current gridlock could lead to a 'wait and see' approach from major financial institutions throughout the year.

Source: American Banker — Top News

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