 in the United States imposes limits on credit card fees. Agarwal, Chomsisengphet, Mahoney, and Stroebel (2015) analyse the effectiveness of this aspect of the CARD Act as well as the requirement for clear information on credit card statements on the costs of making only the minimum payment. They find that regulatory limits on credit card fees reduce overall borrowing costs. They find no evidence of an offsetting increase in interest charges or a reduction in the volume of credit.
Evidence on the risk-return trade-off for banks is inconclusive. Recent evidence for US states suggests that intensified competition can promote risk taking and have negative implications for financial stability (Jiang, Levine, Lin 2018).
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Kaiser, Tim and Lukas