Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

(redirected from Riegle Neal Act)

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 ?
The Riegle Neal Act of 1994 allowed banks to operate across state lines, thus permitting greater geographic diversification of their portfolios.
The rest of the paper is organized as follows: Section II describe the situation before and after Riegle Neal Act of 1994.
The period of analysis ends in 1997, which is three years after the enactment of the Riegle Neal Act. According to the banking literature, changes in Bank Management can take up to three years to be reflected in the bank's indicators.