Haque, Shadman 
ORCID: https://orcid.org/0009-0000-0722-5585
(2025)
Deregulation and the $10 Billion Threshold:
Bank Behavior, M&A Activity, and Market
Reactions Post-EGRRCPA.
Masters thesis, Concordia University.
Preview |
Text (application/pdf)
740kBHaque_MSc_F2025.pdf - Accepted Version Available under License Spectrum Terms of Access. |
Abstract
This thesis examines how the Economic Growth, Regulatory Relief, and Consumer Protection
Act (EGRRCPA) affected U.S. banks near the $10 billion asset threshold. Using data from
2014–2023, the study applies event studies, Wilcoxon tests, difference-in-differences regressions,
and survival analysis to assess bank responses. Results show that banks just below the threshold
(“Indirectly Treated”) reacted more strongly, with significant positive stock market responses
and accelerated asset and equity growth post-deregulation. These banks also increased capital
buffers and reduced leverage. Many crossed the $10 billion threshold through mergers and acquisitions
(M&A), suggesting a strategic shift enabled by the rollback of Dodd-Frank provisions.
The findings demonstrate that deregulation spurred growth and consolidation, particularly among
smaller banks, highlighting how rigid regulatory thresholds can distort bank behaviour. The study
contributes to the literature by documenting the real effects of deregulatory policy on financial
institutions’ strategies and market performance.
iii
| Divisions: | Concordia University > John Molson School of Business > Finance |
|---|---|
| Item Type: | Thesis (Masters) |
| Authors: | Haque, Shadman |
| Institution: | Concordia University |
| Degree Name: | M. Sc. |
| Program: | Finance |
| Date: | June 2025 |
| Thesis Supervisor(s): | Ullah, Saif |
| Keywords: | EGRRCPA, Deregulation |
| ID Code: | 995908 |
| Deposited By: | Shadman Haque |
| Deposited On: | 04 Nov 2025 16:21 |
| Last Modified: | 04 Nov 2025 16:21 |
References:
Academic Literature• Barth, J. R., Caprio Jr., G., & Levine, R. (2002).
Bank Regulation and Supervision: What Works Best?
NBER Working Paper No. 9323.
• Barth, J. R., Dopico, L. G., Nolle, D. E., & Wilcox, J. A. (2004).
An International Comparison and Assessment of the Structure of Bank Supervision.
Federal Reserve Bank of Chicago.
• Binder, J. J. (1998).
The Event Study Methodology Since 1969.
Review of Quantitative Finance and Accounting, 11(2), 111–137.
• Bindal, A., Bouwman, C. H. S., Hu, S., & Johnson, S. A. (2020).
Bank regulatory size thresholds, merger and acquisition behavior, and small business lending.
Journal of Corporate Finance, 62, 101590.
• Black, B. S., & Khanna, V. S. (2007).
Can Corporate Governance Reforms Increase Firms’ Market Values? Evidence from India.
Journal of Empirical Legal Studies, 4(4), 749–796.
• Blacconiere, W. G., & Northcut, W. D. (1997).
Environmental information and market reactions to environmental legislation.
Journal of Accounting, Auditing & Finance, 12(2), 149–178.
• Bouwman, C. H. S., Hu, S., & Johnson, S. A. (2018).
Differential bank behaviors around the Dodd–Frank Act size thresholds.
Journal of Financial Intermediation, 34, 47–57.
• Campello, M., & Matta, R. (2019).
Asset Liquidity and Capital Structure.
ResearchGate.
• Chen, A. H., & Sanger, G. C. (1985).
An analysis of the impact of regulatory change: The case of natural gas deregulation.
Financial Review, 20(1), 36–53.
Erkens, M. H. R., & Gan, Y. (2022).
Rolling Back Dodd-Frank: Investors’ and Banks’ Responses to Financial Market Deregulation.
SSRN Electronic Journal.
• Lamdin, D. J. (2001).
Implementing and interpreting event studies of regulatory changes.
Journal of Economics and Business, 53(2–3), 171–183.
• Noam, E. M. (1993).
Assessing the Impacts of Divestiture and Deregulation in Telecommunications.
Columbia Institute for Tele-Information.
• Ovtchinnikov, A. V. (2013).
Merger waves following industry deregulation.
Journal of Corporate Finance, 21, 51–76.
• Pasiouras, F., Tanna, S., & Zopounidis, C. (2009).
The impact of banking regulations on banks’ cost and profit efficiency: Cross-country evidence.
International Review of Financial Analysis, 18(5), 294–302.
• Srivastav, A., & Vallascas, F. (2019).
Is there a Benefit from Reduced Regulation on Small Banks?
Community Banking Research Conference.
Repository Staff Only: item control page
Download Statistics
Download Statistics