Aguirregabiria, Victor; Clark, Robert; Wang, Hui - University of Toronto, Department of Economics - 2012
The 1994 Riegle Neal (RN) Act removed interstate banking restrictions in the US. The primary motivation was to permit geographic risk diversification (GRD). Using a factor model to measure banks' geographic risk, we show that RN expanded GRD possibilities in small states, but that few banks took...