4 edition of Interstate banking and branching found in the catalog.
1994 by U.S. G.P.O., For sale by the U.S. G.P.O., Supt. of Docs., Congressional Sales Office in Washington .
Written in English
|LC Classifications||KF27 .B544 1993t|
|The Physical Object|
|Pagination||iii, 196 p. ;|
|Number of Pages||196|
|LC Control Number||94183632|
Legal restrictions in the United States[ edit ] Historically, branch banking in the United States - especially interstate branch banking - was viewed unfavorably by regulatory authorities, and this was codified with the enactment of the McFadden Act ofwhich specifically prohibited interstate banking. Under current legislation, a Boatmen's bank customer who lives in Illinois, across the river from St. Applicable law. Merger resulting in out-of-state bank; board approval. They also argue that these larger, interstate organizations will siphon off deposits from their communities to lend elsewhere, depriving them of economic resources for growth and development.
They may be full service branches or limited service branches. Besides, geographic barriers are not needed to ensure that banks meet their local development responsibilities. In addition, smaller banks pushed for, and received, a provision that would allow states to limit interstate entry to the acquisition of existing banks and also set a minimum age requirement of up to five years for the banks that could be acquired. As we have seen, banking organizations have been able to get around restrictive state branching practices via the holding company route; unfortunately, it can be a very expensive and inefficient detour. Notice of transaction.
By the s, more freedom was granted via The Riegle-Neal Act, a piece of federal legislation sanctioning the establishment of nationwide banks. The board may promulgate such regulations as it determines to be necessary or appropriate in order to implement the provisions of this Interstate banking and branching book. These new rules included the following: Bank holding companies that were well-managed and well-capitalized would be allowed to acquire banks in any state after September 29, The rising number of Americans traveling or relocating across the country also contributed to a rethink of the old rules, as mobile citizens found it difficult to gain access to banking services outside the local region in which they lived. Most feature regional or national reciprocity: Out-of-state acquisitions of home state banks are permitted only if home state banks are permitted to acquire banks in the other state.
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Local communities could benefit because geographic diversification should make banks financially stronger and better able to withstand loan losses that could deplete capital and curtail lending activities or, in a worst-case scenario, lead to a failure, which would reduce the banking Interstate banking and branching book in a community.
Banks associated with one-bank or multibank holding companies hold about 94 percent of the industry's assets. The removal of geographic restrictions on how and where a bank can operate is sure to change the structure of the U. This allows to link your profile to this item.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. One of the main proponents of the new interstate banking reform effort was Hugh L.
In the s, six states in New England passed legislation allowing for the formation of regional banks, followed shortly after by banks in the Southeast and Midwest.
Individual states were allowed to opt-out of the branching provisions of the Riegle-Neal Act. Banks do not need interstate banking and branching legislation to move deposits out of an area; that possibility already exists through correspondent Interstate banking and branching book relationships and the fed funds market.
Interstate banking and branching book with funds they cannot invest at a profit locally can lend these funds to out-of-market or out-of-state institutions through one of these routes or by purchasing loans originated elsewhere.
During a speech in Little Rock, Ark. Because its perceived benefits—to consumers, businesses and the banking industry—now outweigh its perceived costs. Figure 1 Bank Holding Companies Have Changed the Industry Landscape Though independent banking companies are still highly represented in numbers, comprising about a third of U.
They generally do not include drive-through teller windows or safe deposit boxes. This has caused financial institutions to reduce their branch business hours and to merge smaller branches into larger ones. Key Takeaways Interstate banking refers to a bank holding company that is permitted to own and operate banks in more than one state.
Any individual who wilfully participates in a violation of this chapter, or any regulation, or order of the board issued pursuant to this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars.
A mini-industry of predicting which banks are ripe for takeover and which will go on an acquisition spree has already cropped up.
Section h. If the board finds that i the proposed transaction will not be detrimental to the safety and soundness of the applicant or the resulting bank, ii any new officers and directors of the resulting bank are qualified by character, experience, and financial responsibility to direct and manage the resulting bank, and iii the proposed merger is consistent with the convenience and needs of the communities to be served by the resulting bank in this State and is otherwise in the public interest, it shall approve the interstate merger transaction and the operation of branches outside of South Carolina by the South Carolina state bank.
Spong, Kenneth. Prices could also decline if banks pass on to consumers the reduction in costs that many analysts expect to come with interstate banking and branching.
The McFadden Act of and its amendments confined national banks to branching within their own state and only to the same extent state banks could branch.
To address this, The Bank Holding Company Act of prohibited bank holding companies headquartered in one state from having branches in any other state.Under the terms of the Riegle-Neal Interstate Banking and Branching Efficiency Act, adequately capitalized and managed bank holding companies can acquire a bank anywhere inside the United States.
Sep 18, · Sep 29, H.R. (rd). To amend the Bank Holding Company Act ofthe Revised Statutes of the United States, and the Federal Deposit Insurance Act to provide Interstate banking and branching book interstate banking and branching.
In 42comusa.com, a database of bills in the U.S. Congress. Downloadable (with restrictions)! This paper uses the staggering timing of branching and interstate banking deregulation as a natural experiment to explore the effect of agency cost on the use of bank loan commitments.
A simple inventory-based model shows that lower agency cost allows a bank to issue more loan commitments because lower agency cost alleviates the difficulty of liquidity.Interstate branching pdf merger without regard to state law was first permitted for national and state-chartered banks by the Riegle-Neal Interstate Banking and Branching Efficiency Act of (“Riegle-Neal”) Riegle-Neal gave each state the opportunity to expressly prohibit, by statute, interstate branching by merger.
This.Book: All Authors / Contributors: Matthew Bender (Firm) OCLC Number: Notes: Also cited as the Riegle-Neal Interstate Banking and Branching Efficiency Act ofPub. L. No.Stat. (Sept. 19, ). Description: 17 pages ; 24 cm: Other Titles: Riegle-Neal Interstate Banking and Branching Efficiency Act of P.L.Although the Riegle-Neal Interstate Ebook and Branching Efficiency Act repealed this provision of the McFadden Act, it specified that state law continues to control intrastate branching, or branching within a state’s borders, for both state and national banks.