Efficient banking under interstate branching
Joseph Hughes (),
William W. Lang,
Loretta Mester and
No 96-9, Working Papers from Federal Reserve Bank of Philadelphia
Nationally chartered banks will be allowed to branch across state lines beginning June 1, 1997. Whether they will depends on their assessment of the profitability of such a delivery system for their services and on their preferences regarding risk and return. The authors investigate the probable effect of interstate branching on banks' risk-return tradeoff, accounting for the endogeneity of deposit volatility. If interstate branching improves the risk-return tradeoff banks face, banks that branch across state lines may choose a higher level of risk in return for higher profits. The authors find distinct efficiency gains due to geographic diversity.
Keywords: Branch banks; Interstate banking (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (161) Track citations by RSS feed
Downloads: (external link)
http://www.philadelphiafed.org/research-and-data/p ... ers/1996/wp96-9r.pdf (application/pdf)
Working Paper: Efficient Banking Under Interstate Branching (1997)
Journal Article: Efficient banking under interstate branching (1996)
Journal Article: Efficient Banking under Interstate Branching (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:96-9
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().