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 ?
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.
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.
Finally, the authors observe that equity-based compensation is more important after the Riegle-Neal Act of 1994.
By allowing the widespread establishment of interstate bank branching networks via mergers, the Riegle-Neal Act of 1994 prompted a dramatic decline in the total number of banks operating in the U.
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.
Only with the phased-in application in the late 1990s of the Riegle-Neal Act of 1994 will most (but not all
Moreover, the extent to which mergers can increase national concentration is limited by the provisions in the Riegle-Neal Act of 1994 that amended the Bank Holding Company Act and established national (10 percent) and state-by-state (30 percent) deposit concentration limits for interstate bank acquisitions.