A LESSON TO LEARN FROM DEVELOPED COUNTRIES: THE CASE OF STATE BRANCHING DEREGULATION IN THE US

Abstract

The era of US state branching deregulation started in 1970 and ended up with the enactment of the Riegle Neal Act of 1994. One of the purposes of the branching restriction was to avoid batik concentration. The following paper addresses the influence of the state deregulation on commercial banks' efficiency, within the US. We calculate an indicator of batik efficiency using Data Envelopment Analysis (DEA). The efficiency indicator is used as the primary step to analyze the effect of state branching law deregulation on batik's efficiency The analysis is complemented with a failure prediction. model using these DEA scores.