(16) Section 102 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ("Riegle-Neal Act
") permits the Board, in certain circumstances, to approve interstate merger transactions that would otherwise be prohibited under state law.
The Riegle-Neal Interstate Banking and Branching Efficiency Act ("Riegle-Neal Act
") was signed into law by President Clinton on September 29, 1994.
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
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 second wave of deregulatory measures that occurred in the mid and late nineties (i.e., 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
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.
The Riegle-Neal Act
of 1994 essentially eliminated any remaining federal restrictions on interstate branching.
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.