The Case for Interstate Branch Banking

Abstract

When asked about the most important developments in banking in the decade of the 1980s, most people are likely to point to the thrift debacle or to losses on loans to less developed countries. But arguably more influential has been a benign development, namely, the rise of interstate banking. In 1980, only Maine allowed bank holding companies from outside the state to acquire Maine banks. By 1990, all but four states allowed out-of-state banks to enter, although in many states there were regional limitations on entry.