Geographic Deregulation and Commerical Bank Performance in US State Banking Markets
AbstractThis paper examines the effects of geographical deregulation on commercial bank performance across states. We reach some general conclusions. First, the process of deregulation on an intrastate and interstate basis generally improves bank profitability and performance. Second, the macroeconomic variables -- the unemployment rate and real personal income per capita – and the average interest rate affect bank performance as much, or more, than the process of deregulation. Finally, while deregulation toward full interstate banking and branching may produce more efficient banks and a healthier banking system, we find mixed results on this issue.
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Bibliographic InfoPaper provided by University of Nevada, Las Vegas , Department of Economics in its series Working Papers with number 0802.
Length: 29 pages
Date of creation: Nov 2008
Date of revision:
commercial banks; geographic deregulation; bank performance;
Other versions of this item:
- YongDong Zou & Stephen M. Miller & Bernard Malamud, 2008. "Geographic Deregulation and Commercial Bank Performance in US State Banking Markets," Working papers 2008-25, University of Connecticut, Department of Economics.
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-BAN-2008-11-25 (Banking)
- NEP-MAC-2008-11-25 (Macroeconomics)
- NEP-REG-2008-11-25 (Regulation)
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