De Jure Interstate Banking: Why Only Now?

Kane, Edward J.

doi:10.2307/2078020

Cited by 148 publications

(98 citation statements)

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“…After using this existing literature to present a hypothesis that has been dominant in the literature on banking, we develop a set of theoretically informed hypotheses grounded in the growing corpus of work on insti-1 Large banks heavily lobbied for the 1994 act. Nations Bank CEO Hugh McColl theorized that expansionminded bank-holding companies that owned large banks headquartered in major cities surrounded by rural areas were particularly successful lobbyists because the geographic diversity of these heartland banks made it easier for them to accumulate congressional votes (Kane, 1996). The unsuccessful countermovement originated with smaller banks represented by the Independent Bankers Association of America (the national trade organization for community and independent banks), the Conference of State Bank Supervisors, and other unions of smaller banks.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Vive La Résistance: Competing Logics and the Consolidation of U.S. Community Banking

Marquis

Lounsbury

2007

AMJ

597

479

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We investigate how competing logics facilitate resistance to institutional change, focusing on banking professionals' resistance to large, national banks' acquisitions of smaller, local banks. Acquisitions led to new bank foundings, particularly when out-of-town banks were the acquirers and a community's local population of bank professionals was large. We argue that the national banks' efforts to introduce a banking logic emphasizing efficiencies of geographic diversification triggered new forms of professional entrepreneurialism intended to preserve a community logic of banking. Contributions to a synthesis of ecological and institutional perspectives and to research on entrepreneurship and resistance to institutional change are discussed.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Vive La Résistance: Competing Logics and the Consolidation of U.S. Community Banking

Marquis

Lounsbury

2007

AMJ

597

479

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“…July 2007 Furthermore, Kane (1996) and Kroszner and Strahan (1999) have pointed out the less bank-dependent than its European counterparts. Furthermore, market players, to meet the frustrated demand and to exploit profit opportunities, have been constantly circumventing and eroding the burdensome regulations via legal loopholes, contractual and information-processing innovations, regulatory/structural arbitrage, and interpretive changes in statute-implementing regulations that regulatory bodies actually enforce (Kane [1981(Kane [ , 1984(Kane [ , 1996 has provided detailed analyses).…”

Section: Ecb Working Paper Series No 788mentioning

confidence: 99%

“…Furthermore, market players, to meet the frustrated demand and to exploit profit opportunities, have been constantly circumventing and eroding the burdensome regulations via legal loopholes, contractual and information-processing innovations, regulatory/structural arbitrage, and interpretive changes in statute-implementing regulations that regulatory bodies actually enforce (Kane [1981(Kane [ , 1984(Kane [ , 1996 has provided detailed analyses). As Kane (1981, p. 359) asserts, "In the 1970s, loophole mining and fabrication became the main business of modern depository institutions."…”

Section: Ecb Working Paper Series No 788mentioning

confidence: 99%

“…Kane (1996) and Kroszner and Strahan (1999) have pointed out the irony that the cost of regulation is usually the lowest by the time it is removed. In the history of the U.S. financial service industry, most of the effects targeted by the rescission will have already been tolerated by the enforcement system for years before an exclusionary statute comes to be formally rescinded, and more importantly, will have been from the beginning constantly subject to erosions by market players through legal loopholes, contractual and information processing innovations, regulatory/structural arbitrage 6 , and interpretive changes in statute-implementing regulations that regulatory bodies actually enforce.…”

Section: Introductionmentioning

confidence: 99%

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Evaluating the real effect of bank branching deregulation: Comparing contiguous counties across US state borders

Huang

2008

Journal of Financial Economics

238

124

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu WO R K I N G PA P E R S E R I E S N O 7 8 8 / J U LY 2 0 0 7 If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated EVALUATING THE REAL EFFECT OF BANK BRANCHING DEREGULATION COMPARING CONTIGUOUS COUNTIES ACROSS U.S. STATE BORDERSby Rocco R. Huang ECB LAMFALUSSY FELLOWSHIP PROGRAMMEIn 2007 all ECB publications feature a motif taken from the €20 banknote. WO R K I N G PA P E R S E R I E S CONTENTS Non-technical summaryThis paper designs a new methodology to evaluate the effects of policy changes that are specific to sub-national regions. The main idea is to compare two neighboring geographic units that are separated by a political border, but are otherwise very similar, to exploit the policy differences that sometimes arise across the border because of some deregulations or reforms that take place early in only one of the two regions.If a policy reform takes place in Michigan, and subsequently Michigan grows faster than the national average; we are tempted to conclude that the reform has produced positive effects. But this may not be a good comparison: When you compare Michigan to Texas, it is quite easy for you to find large growth rate differences, either positive or negative, simply because the two state economies always move in opposite directions. But you can not immediately interpret this as the effect of policy changes in Michigan. This paper's solution is to compare the border areas of two neighboring U.S. states where policies differ across the state border. In these areas, income level, economic structure, etc, are very similar. And more importantly, access to transport, climate, agglomeration economy, etc are similar too. These factors are usually very difficult for econometricians to explicitly control for; but between two neighboring areas these differences are arguably very small. Therefore, the effect of a certain policy change should be more precisely identified by comparing the differential outcomes across the border.In this paper, I use the deregulation of bank geographic expansion i...

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“…Having multiple supervisors may encourage innovative or efficiency-enhancing competition (Kane 1984;Romano 1985Romano , 1997Romano , 2001Kupiec and White 1996). 9 Further, multiple supervisors might be less likely to become inefficient and inflexible or to accumulate excessive power and use it inappropriately (Taylor 1995;Kane 1996;Briault 1999;Llewellyn 1999;Abrams and Taylor 2001).…”

Section: Previous Research On the Effects Of The Structure Of Banmentioning

confidence: 99%

An International Comparison and Assessment of the Structure of Bank Supervision

Barth

Dopico

Nolle³

et al. 2002

SSRN Journal

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Two central questions about the structure of bank supervision are whether central banks should supervise banks and whether to have multiple supervisors. We use data for 70 countries across developed, emerging and transition economies to estimate statistical connections between banking performance, the structure of bank supervision, permissible banking activities, legal environments, banking market structure and macroeconomic conditions. We find that where central banks supervise banks, banks tend to have more non-performing loans. Countries with multiple supervisors have lower capital ratios and higher liquidity risk. We also find that conclusions from non-transition economies may not necessarily apply to transition economies.

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De Jure Interstate Banking: Why Only Now?

Cited by 148 publications

References 0 publications

Vive La Résistance: Competing Logics and the Consolidation of U.S. Community Banking

Vive La Résistance: Competing Logics and the Consolidation of U.S. Community Banking

Evaluating the real effect of bank branching deregulation: Comparing contiguous counties across US state borders

An International Comparison and Assessment of the Structure of Bank Supervision

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