Branching Restrictions and Banking Offices

Abstract

The available evidence is partly consistent and partly inconsistent with a negative association of branching restrictions and the number of banking offices. In this paper, I present evidence that the failure to consistently find such a negative association of branching restrictions and banking offices is quite robust. I suggest that the endogeneity of the banking restrictions and regulators' unmodeled behavior are the basic source of the inconsistency. I conclude that there is no evidence that suggests substantial changes in the number of banking offices with the introduction of interstate branching.

Citation

Dwyer, G.P. (1997), "Branching Restrictions and Banking Offices", Managerial Finance, Vol. 23 No. 2, pp. 65-77. https://doi.org/10.1108/eb018609