IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v77y1993i4p687-705.html
   My bibliography  Save this article

Pressure-Group Influence and Institutional Change: Branch-Banking Legislation during the Great Depression

Author

Listed:
  • Abrams, Burton A
  • Settle, Russell F

Abstract

Between 1931 and 1935 the change in the state laws governing the organizational structure of banking was significant. Twenty-two states relaxed restrictions over branch banking, even though many had previously prohibited it. We apply a model of pressure-group and rent-seeking behavior to investigate the reasons underlying this remarkable shift in the institutional arrangements for regulating the structure of the banking industry. The findings indicate that the extraordinarily high rate of bank failures tipped the political balance toward the pro-branching forces in many states. However, in a number of states growth in the influence of branch and group bankers and increases in urbanization were largely responsible for the relaxation of restrictions over branch banking. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Abrams, Burton A & Settle, Russell F, 1993. "Pressure-Group Influence and Institutional Change: Branch-Banking Legislation during the Great Depression," Public Choice, Springer, vol. 77(4), pages 687-705, December.
    • Handle: RePEc:kap:pubcho:v:77:y:1993:i:4:p:687-705
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. International Monetary Fund, 2006. "Regulatory Capture in Banking," IMF Working Papers 2006/034, International Monetary Fund.
    2. Kroszner, Randall S., 2000. "Obstacles To Optimal Policy: The Interplay of Politics and Economics in Shaping Bank Supervision and Regulation Reforms," Working Papers 158, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    3. Pierre C. Boyer & Jorge Ponce, 2011. "Central Banks and Banking Supervision Reform," Chapters, in: Sylvester Eijffinger & Donato Masciandaro (ed.), Handbook of Central Banking, Financial Regulation and Supervision, chapter 6, Edward Elgar Publishing.
    4. Pierre C. Boyer & Jorge Ponce, 2010. "Central banks, regulatory capture and banking supervision reform," Documentos de trabajo 2010003, Banco Central del Uruguay.
    5. repec:ces:ifodic:v:11:y:2014:i:4:p:19105950 is not listed on IDEAS
    6. Thomas A. Garrett & Gary A. Wagner & David C. Wheelock, 2005. "A spatial analysis of state banking regulation," Papers in Regional Science, Wiley Blackwell, vol. 84(4), pages 575-595, November.
    7. Charles W. Calomiris & Stephen H. Haber, 2014. "Interest Groups and the Glass-Steagall Act," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(04), pages 14-18, January.
    8. Randall S. Kroszner & Philip E. Strahan, 2000. "Obstacles to Optimal Policy: The Interplay of Politics and Economics in Shaping Bank Supervision and Regulation Reforms," CRSP working papers 512, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    9. VanHoose, David, 2011. "Systemic Risk and Macroprudential Bank Regulation: A Critical Appraisal," Journal of Financial Transformation, Capco Institute, vol. 33, pages 45-60.
    10. Kris James Mitchener, 2006. "Are Prudential Supervision and Regulation Pillars of Financial Stability? Evidence from the Great Depression," NBER Working Papers 12074, National Bureau of Economic Research, Inc.
    11. Randall S. Kroszner & Philip E. Strahan, 1997. "The political economy of deregulation: evidence from the relaxation of bank branching restrictions in the United States," Research Paper 9720, Federal Reserve Bank of New York.
    12. Ọláyínká Oyèkọ́lá, 2021. "Finance and inequality in a panel of US States," Empirical Economics, Springer, vol. 61(5), pages 2739-2795, November.
    13. Burton A. Abrams & Margaret Z. Clarke & Russell F. Settle, 1999. "The Impact of Banking and Fiscal Policies on State‐Level Economic Growth," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 367-378, October.
    14. Almazan, Andres, 2002. "A Model of Competition in Banking: Bank Capital vs Expertise," Journal of Financial Intermediation, Elsevier, vol. 11(1), pages 87-121, January.
    15. James Lee Caton, 2019. "Creativity in a theory of entrepreneurship," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 8(4), pages 442-469, September.
    16. Boyer, Pierre C. & Ponce, Jorge, 2012. "Regulatory capture and banking supervision reform," Journal of Financial Stability, Elsevier, vol. 8(3), pages 206-217.
    17. Kris James Mitchener, 2007. "Are Prudential Supervision and Regulation Pillars of Financial Stability? Evidence from the Great Depression," Journal of Law and Economics, University of Chicago Press, vol. 50(2), pages 273-302.
    18. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    19. Randall S. Kroszner & Philip E. Strahan, 1998. "What Drives Deregulation? Economics and Politics of the Relaxation of Bank Branching Restrictions," NBER Working Papers 6637, National Bureau of Economic Research, Inc.
    20. Randall S. Kroszner & Philip E. Strahan, 2014. "Regulation and Deregulation of the US Banking Industry: Causes, Consequences, and Implications for the Future," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 485-543, National Bureau of Economic Research, Inc.
    21. Randall S. Kroszner & Philip E. Strahan, 2001. "Obstacles to Optimal Policy: The Interplay of Politics and Economics in Shaping Bank Supervision and Regulation Reforms," NBER Chapters, in: Prudential Supervision: What Works and What Doesn't, pages 233-272, National Bureau of Economic Research, Inc.
    22. Charles W. Calomiris & Stephen H. Haber, 2014. "Interest Groups and the Glass-Steagall Act," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(4), pages 14-18, 01.

    More about this item

    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:kap:pubcho:v:77:y:1993:i:4:p:687-705. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.