Is America's Banking System the System It Needs?

This article examines the effects of consolidation on the American banking system, specifically focusing on the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. The act aimed to consolidate the fragmented banking system, resulting in the creation of powerful banking empires and the disappearance of many smaller banks through mergers. The Office of the Comptroller of the Currency (OCC) is considering changes to the merger approval process, which could impact future bank mergers. The article acknowledges differing perspectives on consolidation and emphasizes the importance of taking a comprehensive view of the banking system. The debate surrounding the size of banks is also discussed, with some experts arguing that larger banks have a performance advantage while others believe that smaller banks outperform in certain areas. The concept of "too big to fail" is explored, and the author suggests that allowing regional banks to consolidate could increase competition in the market. However, the future of consolidation may be influenced by the outcome of the upcoming presidential election. [Extracted from the article]