INTERSTATE BANKING AND BRANCHING UNDER THE RIEGLE-NEAL ACT OF 1994

In this Article, Mark Rollinger examines the Riegle-Neal Act legislati on that will allow banks to branch interstate, at least in states that do not opt out of its provisions. In sun,eying the history of banking regulation, including past efforts of banks to circumvent geographic restrictions, the Article shows that the Riegle-Neal Act was less revo lutionary than commonly perceived. The Article explores the issues and controversies surrounding the passage of the legislation including it s potential effects on industry competition, access to credit, and ban k safety and soundness. The Article then analyzes how these same issue s will influence the debate at the state level concerning whether to o pt out. Further the Article focuses on the potential effect this legis lation will have on the banking industry, concluding that it may lead to large cost savings but will not necessarily lead to the demise of c ommunity banks or bank holding companies. Ultimately, the Article find s that the legislation was a skillful compromise, building on the pres ent structure while maintaining a large local influence on banking reg ulation.