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The Evolution of Texas Banking

In: Ten-Gallon Economy

Author

Listed:
  • Kory Killgo
  • Kenneth J. Robinson

Abstract

The history of Texas banking is colorful and unique. The original state constitution explicitly banned state-chartered banks, exhibiting a distrust of concentrated power that would be evidenced into the twentieth century with resistance to branch banking. Before the Federal Deposit Insurance Corp., a unique state system protected depositors from loss and provided banks a choice of two deposit insurance systems. Texas banks suffered during the Great Depression, then underwent a more regional crisis in the 1980s as problems in the energy and real estate sectors devastated institutions and led to a record number of failures. Texas banks have since done generally well, weathering the Great Recession better than their counterparts elsewhere.

Suggested Citation

  • Kory Killgo & Kenneth J. Robinson, 2015. "The Evolution of Texas Banking," Palgrave Macmillan Books, in: Pia M. Orrenius & Jesús Cañas & Michael Weiss (ed.), Ten-Gallon Economy, chapter 9, pages 119-137, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53017-2_9
    DOI: 10.1057/9781137530172_9
    as

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