IDEAS home Printed from https://ideas.repec.org/a/fip/fedrer/y1990inovp3-17nv.76no.6.html
   My bibliography  Save this article

The case for interstate branch banking

Author

Listed:
  • David L. Mengle

Abstract

During the 1980s, many states relaxed laws restricting branching, and most states opened up their borders to entry by out-of-state bank holding companies. This article suggests that both banks and consumers would benefit if laws were further modified to permit bank holding companies to consolidate their interstate subsidiaries into branch networks. While such a change is likely to lead to a smaller number of large banks (although those remaining would operate nationwide), there would probably be little change in the number of small banks serving local markets.

Suggested Citation

  • David L. Mengle, 1990. "The case for interstate branch banking," Economic Review, Federal Reserve Bank of Richmond, vol. 76(Nov), pages 3-17.
    • Handle: RePEc:fip:fedrer:y:1990:i:nov:p:3-17:n:v.76no.6
    as

    Download full text from publisher

    File URL: https://fraser.stlouisfed.org/files/docs/publications/frbrichreview/rev_frbrich199011.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Flannery, Mark J & James, Christopher M, 1984. "Market Evidence on the Effective Maturity of Bank Assets and Liabilities," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 435-445, November.
    2. Sydney J. Key, 1989. "Mutual recognition: integration of the financial sector in the European Community," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Sep, pages 591-609.
    3. Evanoff, Douglas D, 1988. "Branch Banking and Service Accessibility," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(2), pages 191-202, May.
    4. Jim Burke, 1984. "Antitrust laws, Justice department guidelines, and the limits of concentration in local banking markets," Staff Studies 138, Board of Governors of the Federal Reserve System (U.S.).
    5. Calomiris, Charles W., 1990. "Is Deposit Insurance Necessary? A Historical Perspective," The Journal of Economic History, Cambridge University Press, vol. 50(2), pages 283-295, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Berger, Allen N. & El Ghoul, Sadok & Guedhami, Omrane & Roman, Raluca A., 2022. "Geographic deregulation and banks’ cost of equity capital," Journal of International Money and Finance, Elsevier, vol. 120(C).
    2. Krol, Robert & Svorny, Shirley, 1996. "The effect of the bank regulatory environment on state economic activity," Regional Science and Urban Economics, Elsevier, vol. 26(5), pages 531-541, August.
    3. Hubert P. Janicki & Edward Simpson Prescott, 2006. "Changes in the size distribution of U.S. banks: 1960-2005," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 92(Fall), pages 291-316.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raghuram Rajan & Rodney Ramcharan, 2015. "The Anatomy of a Credit Crisis: The Boom and Bust in Farm Land Prices in the United States in the 1920s," American Economic Review, American Economic Association, vol. 105(4), pages 1439-1477, April.
    2. Charles W. Calomiris & Christopher Hanes, 1994. "Historical Macroeconomics and American Macroeconomic History," NBER Working Papers 4935, National Bureau of Economic Research, Inc.
    3. Gorton, Gary & Huang, Lixin, 2006. "Bank panics and the endogeneity of central banking," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1613-1629, October.
    4. Bryan Caplan & Edward Stringham, 2003. "Networks, Law, and the Paradox of Cooperation," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(4), pages 309-326, December.
    5. Larry D. Wall, 1997. "Taking note of the deposit insurance fund: a plan for the FDIC to issue capital notes," Economic Review, Federal Reserve Bank of Atlanta, vol. 82(Q 1), pages 14-30.
    6. repec:ecb:ecbops:2010161 is not listed on IDEAS
    7. Thorsten V. Koppl & James MacGee, 2001. "Limited enforcement and efficient interbank arrangements," Working Papers 608, Federal Reserve Bank of Minneapolis.
    8. Beck, Thorsten, 2003. "The incentive-compatible design of deposit insurance and bank failure resolution : concepts and country studies," Policy Research Working Paper Series 3043, The World Bank.
    9. repec:zbw:bofrdp:2000_009 is not listed on IDEAS
    10. E. Dinenis & S. K. Staikouras, 1998. "Interest rate changes and common stock returns of financial institutions: evidence from the UK," The European Journal of Finance, Taylor & Francis Journals, vol. 4(2), pages 113-127.
    11. Sarah Sanya & Mr. Montfort Mlachila, 2010. "Post-Crisis Bank Behavior: Lessons From Mercosur," IMF Working Papers 2010/001, International Monetary Fund.
    12. Zagonov, Maxim, 2011. "Securitization and bank intermediation function," MPRA Paper 34961, University Library of Munich, Germany, revised Sep 2011.
    13. Donald L. Welker, 1986. "Thrift competition : does it matter?," Economic Review, Federal Reserve Bank of Richmond, vol. 72(Jan), pages 2-10.
    14. Mohamed Belkhir & Abdelaziz Chazi, 2010. "Compensation Vega, Deregulation, and Risk‐Taking: Lessons from the US Banking Industry," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(9‐10), pages 1218-1247, November.
    15. repec:zbw:bofrdp:2006_019 is not listed on IDEAS
    16. Evanoff, Douglas D. & Jagtiani, Julapa A. & Nakata, Taisuke, 2011. "Enhancing market discipline in banking: The role of subordinated debt in financial regulatory reform," Journal of Economics and Business, Elsevier, vol. 63(1), pages 1-22.
    17. Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance Around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring.
    18. Beck, Thorsten, 2002. "Deposit insurance as private club: is Germany a model?," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(4), pages 701-719.
    19. Iftekhar Hasan & Sudipto Sarkar, 2002. "Banks' option to lend, interest rate sensitivity, and credit availability," Review of Derivatives Research, Springer, vol. 5(3), pages 213-250, October.
    20. Danisewicz, Piotr & Lee, Chun Hei & Schaeck, Klaus, 2022. "Private deposit insurance, deposit flows, bank lending, and moral hazard," Journal of Financial Intermediation, Elsevier, vol. 52(C).
    21. Kilian Huber, 2021. "Are Bigger Banks Better? Firm-Level Evidence from Germany," Journal of Political Economy, University of Chicago Press, vol. 129(7), pages 2023-2066.
    22. Hyytinen, Ari & Toivanen, Otto, 2004. "Monitoring and market power in credit markets," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 269-288, February.
    23. Howard Bodenhorn & Eugene N. White, 2014. "The Evolution of Bank Boards of Directors in New York, 1840–1950," NBER Chapters, in: Enterprising America: Businesses, Banks, and Credit Markets in Historical Perspective, pages 107-145, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Interstate banking; Branch banks;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedrer:y:1990:i:nov:p:3-17:n:v.76no.6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.