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 home state of both First Midwest Bank and SB&T is Illinois; therefore, section 102 of the Riegle-Neal Act does not apply to the proposed bank merger.
36) To address the concern about excessive concentration of the banking industry, the Riegle-Neal Act prohibited banks from controlling more than 30% of statewide deposits or 10% of nationwide deposits after a merger.
Removing the barriers to intrastate and interstate branch banking finally came through a combination of demographic, technological, and market forces which culminated in the passage of the Riegle-Neal Act of 1994.
This acts as a test for compliance for the rules under section 109 of the 1994 Riegle-Neal Act.
And in the most obvious example of its involvement, the government put into practice its new vision of commercial banking by explicitly approving the consolidation of commercial banks through the Riegle-Neal Act and by expanding the banks' stock of permissible activities with the Gramm-Leach-Bliley Act.
the Riegle-Neal Act of 1994 and the Gramm-Leach Bliley Act of 1999) have also given birth to numerous studies investigating the effects of deregulation on banks' managerial compensation structures.
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.
The 1994 Riegle-Neal Act ushered forth a new era in banking deregulation.
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.
This paper examines possible effects on local banking market concentration that resulted from the provision in the Riegle-Neal Act that allowed states to opt-in to the establishment of de novo interstate branches.
Our regression equation also includes an indicator variable that captures the impact of the Riegle-Neal Act on the bid premium.
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.