Size-Based Regulation and Bank Fragility: Evidence from the Wells Fargo Asset Cap

• 成果类型: Article; Early Access
• 署名作者: Ruan, Tianyue; Vij, Siddharth
• 署名单位: University of Hong Kong; University System of Georgia; University of Georgia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhag071
• 发表日期: 2026-08-12
• 关键词: G01; G21; G28; G32; E44; E58; FinTech

摘要

We argue that heightened regulation on large banks contributed to the rise in fragility of smaller banks revealed by the 2023 regional bank crisis. In 2018, regulators restricted Wells Fargo, the third largest U.S. bank, from growing its total assets. We estimate this asset cap led Wells Fargo to give up deposits amounting to 2.2% of aggregate bank deposits. These deposits, primarily uninsured, were reallocated to banks geographically proximate to Wells Fargo, including smaller, less regulated banks. In turn, these banks experienced higher deposit outflows once monetary tightening commenced and saw their stock prices plummet during the 2023 stress.