Changes In Market Assessments Of Bank Risk Following The Riegle-Neal Act Of 1994
Bank risk; Interstate banking; Regulation; Riegle-Neal; Risk shift
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. © 2002 Elsevier Science B.V. All rights reserved.
Journal of Banking and Finance
Number of Pages
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Akhigbe, Aigbe and Whyte, Ann Marie, "Changes In Market Assessments Of Bank Risk Following The Riegle-Neal Act Of 1994" (2003). Scopus Export 2000s. 2230.