| The banking industry of the United States has lost market share over the years. This industry had inconsistent and reduced profitability in the 1970s and 1980s. Since the 1990s profitability has returned, but market share has not.; To enable the banking industry to survive, legislation was enacted to assist management to compete for market share, to prevent failures, and to protect banking customers. This study focused on two related laws, their effects on the industry, and the attenuated issues: the Riegle-Neal Interstate Banking and Branching Efficiency Act and the Riegle Community Development and Regulatory Improvement Act of 1994. Banking industry management wanted this legislation to enable banks to establish branches across state lines and to purchase out-of-state banks. This study determined the effect, if any, of this legislation on the performance of the banking industry. Additionally, this research focused on whether the performance of the banking industry is independent of the economy and economic growth.; Further study explored the relationship of the U.S. banking industry with those of Japan, the United Kingdom, and Canada. This area of study determined if the passage of U.S. legislation affects banking industry performance in other countries. An investigation into the increased efficiency of performance of the banking industry prior to the passage of the legislation uncovered issues such as securitization, management policy, and economic cycle fluctuations. These issues and their interaction with potentially improved U.S. bank performance are explained in detail. |
