Efforts to curb post-crisis regulatory reforms in the U.S. financial sector would be a mixed bag for banks says a report published on Wednesday by Moody’s Investors Service.

Although efforts to roll back regulation on the financial sector may boost banks’ profitability, this would also lead to higher asset risk over time, along with weaker capital and liquidity positions, the report says.

The report acknowledges that it’s still “too early” to predict precisely how the U.S. regulatory landscape will evolve under the Trump administration, but it sees some broad implications, both positive and negative.

“Policies intended to foster growth could lead to more aggressive lending at banks,” says David Fanger, senior vice president in Moody’s financial institutions group, in a statement. “Higher loan growth and more aggressive lending result in greater asset risk.”

Additionally, eliminating the Volcker Rule, which required banks to curb principal trading, would also raise asset risk, the report says. It also suggests that credit quality could be negatively impacted if capital requirements are reduced, stress testing requirements are weakened, or funding and liquidity requirements are weakened.

The report also says that a potential dismantling of a new mechanism designed to facilitate a more orderly resolution of highly interconnected, systemically important banks could also backfire. “Although the intent of eliminating [the resolution mechanism] may be to reduce the likelihood of future bank bail-outs, Moody’s believes that, without a credible replacement resolution framework, the actual effect could be just the opposite,” the report says.

On the upside, if reduced regulatory controls decrease the cost of compliance, bank profitability would get a boost, the report says.