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what impact has recent financial reform legislation had on raising short-term cash?

what impact has recent financial reform legislation had on raising short-term cash?

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The government has recently passed FINREG, the Dodd-Frank Wall Street Reform as well as consumer protection act (2009). This has led to a increase in overall short term cash levels. This legislation has ensured that the prohibition which was there on bank for paying interest on commercial checking accounts is removed, this prohibition was there from around 75 years. Various researchers conducted in this regard shows that bank actually benefits a lot by granting necessary interests to business deposits. A new competition has ignited among banks for corporate deposits and they have got access to capital quite easily as well. Previously, the capital was going abroad due to this restriction, but after this removal, the money has flew back to the country and has raised short term cash levels.

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