In May, President Donald Trump signed into law a rewrite of the so-called "Volcker Rule," easing banking regulations. The Volcker Rule is part of the 2010 Dodd-Frank financial reform that prohibits banks from making market bets on their own accounts in order to profit off short-term price changes in the market.
With the revisions, the first major piece of deregulation since the 2008 financial crisis, banks now have more freedom to take short-term risks.
Loosening up the capital restrictions, Dwyer said, allows banks to give more money back to shareholders instead of holding it on reserve.
"Also, you've got a much lower regulatory burden and compliance burden on the smaller banks that are no longer considered too big to fail," he said.
Banks have the opportunity to make more money with fewer regulations.
"The regulators took away [the banks'] ability to make money," Dwyer said.
"Now you can actually buy liquidity to the market," he said. "You didn't have that opportunity before."