Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

(redirected from Riegle-Neal Act of 1994)

Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

Law permitting interstate banking in the U.S.

Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

Legislation in the United States repealing previous restrictions on banks from operating in more than one state. The Riegle-Neal Act allowed banks, under certain circumstances, to acquire banks or set up branches in other states without creating a separate subsidiary. The Act streamlined banking regulation in the United States, and, for the first time, allowed out-of-state residents to set up bank accounts. It also gave federal regulators the authority to ensure that out-of-state deposits do not dominate American banking.
References in periodicals archive ?
Effective size caps on banks were imposed by the banking reforms of the 1930s, and there was an effort to maintain such restrictions in the Riegle-Neal Act of 1994.
In the post-1986 period, I would highlight the same two acts that Bob emphasized: the relaxation of most restrictions on interstate banking in the Riegle-Neal Act of 1994 and the repeal of the Glass-Steagall Act's restrictions on most combinations of commercial and investment banking in the Gramm-Leach-Bliley Act of 1999.
The prohibitions on interstate branching in general were greatly attenuated by the Riegle-Neal Act of 1994 authorizing interstate bank mergers and permitting interstate branching on a state opt-out basis.
Moreover, the extent to which mergers can increase national concentration is limited by the provisions in the Riegle-Neal Act of 1994, which amended the Bank Holding Company Act and established national (10 percent) and state-by-state (30 percent) deposit concentration limits for interstate bank acquisitions.