EconPapers    
Economics at your fingertips  
 

Efficient banking under interstate branching

Joseph Hughes, William Lang, Loretta Mester and Choon-Geol Moon

No 96-9, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: 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)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (191)

Downloads: (external link)
https://www.philadelphiafed.org/-/media/frbp/asset ... ers/1996/wp96-9r.pdf (application/pdf)

Related works:
Working Paper: Efficient Banking Under Interstate Branching (1997)
Journal Article: Efficient banking under interstate branching (1996)
Journal Article: Efficient Banking under Interstate Branching (1996) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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 ().

 
Page updated 2025-03-31
Handle: RePEc:fip:fedpwp:96-9