Changes in market assessments of bank risk following the Riegle-Neal Act of 1994
Abbreviated Journal Title
J. Bank Financ.
bank risk; risk shift; regulation; Riegle-Neal; interstate banking; INTERSTATE BANKING; FINANCIAL INSTITUTIONS; WEALTH; RETURNS; DIDMCA; Business, Finance; Economics
We examine changes in bank risk following the passage of the Riegle-Neal Act of 1994 and find a significant decline in bank risk. The extent of interstate banking activity and the status of state-level interstate banking laws are important in explaining the risk reduction. Banks with assets in multiple states experience a significant reduction in risk whereas banks with assets in one state experience no significant change in risk. Banks in states with the most restrictive interstate banking provisions experience a significant decrease in risk whereas banks in states with more liberal interstate banking provisions experience a significant increase in risk. (C) 2002 Elsevier Science B.V. All rights reserved.
Journal of Banking & Finance
"Changes in market assessments of bank risk following the Riegle-Neal Act of 1994" (2003). Faculty Bibliography 2000s. 3588.