An Examination of Entry and Competitive Performance in Rural Banking Markets
This article explores the change in the level of competition in rural banking markets after the deregulation that occurred following passage of the Riegle-Neal Act of 1994. Using an empirical model that utilizes both the number of banks and the value of deposits in a cross-section of 278 rural markets, we decompose the impact of the entry of new banks into resulting changes in per capita demand and the costs/profits of local banks in 1994 and 2004. The results support the view that local banking markets have become more competitive since the mid-1990s.
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Volume (Year): 76 (2010)
Issue (Month): 3 (January)
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