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The changing landscape of American Banking: The impact of Riegle-Neal

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Abstract

The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which became fully operative on June 1, 1997, eliminated virtually all interstate banking and branching restrictions in the U.S. It was assumed that banks and bank holding companies would use their new geographic freedom to expand across state lines through mergers, acquisitions, and the establishment of de novo facilities. There was considerable concern that there would be fewer but more sizable banks that would abandon or increase fees for smaller customers including individuals, businesses, and rural communities. This paper provides an early glimpse at the accuracy of these predictions by studying the changes in the number and size of banks serving the Seventh Federal Reserve District since the enforcement of Riegle-Neal.

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Authors and Affiliations

  1. Roosevelt University, USA

    Ann B. Matasar

  2. Elmhurst College, USA

    Joseph N. Heiney

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  1. Ann B. Matasar
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  2. Joseph N. Heiney
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Matasar, A.B., Heiney, J.N. The changing landscape of American Banking: The impact of Riegle-Neal. International Advances in Economic Research 5, 93–107 (1999). https://doi.org/10.1007/BF02295035

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