International Advances in Economic Research

, Volume 10, Issue 4, pp 328–336 | Cite as

The riegle-neal act and local banking market concentration

  • Daniel C. Giedeman


The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 greatly transformed the American banking system by allowing the widespread establishment of interstate bank branching networks. 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. Regression analysis using data from more than seven hundred cities does not provide any evidence that allowing the establishment of de novo interstate branches caused increases in local banking market concentration. These results may help alleviate some concerns that passage of the Financial Services Regulatory Relief Act currently pending in Congress will result in lessened competition in local banking markets.


Regression Analysis Economic Growth International Economic Financial Service Banking System 
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Copyright information

© International Atlantic Economic Society 2004

Authors and Affiliations

  • Daniel C. Giedeman
    • 1
  1. 1.Grand Valley State UniversityUSA

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