Which of the following items has not been a factor in the erosion of interstate banking restrictions?
A)The purchase of troubled banks.
B)The establishment of nonbank banks.
C)The Bank Holding Company Act Amendments of 1970.
D)The expansion of OBHC activities.

Question

Quizplus · Accepted Answer

The Bank Holding Company Act Amendments of 1970 actually strengthened interstate banking restrictions by requiring regulatory approval for any mergers or acquisitions between banks across state lines. The other items listed have all played a role in the erosion of interstate banking restrictions. The purchase of troubled banks has led to increased interstate banking as larger banks acquire struggling banks in other states. The establishment of nonbank banks allowed companies such as General Electric and Target to offer banking services without being subject to traditional banking regulations. The expansion of OBHC activities refers to the increased power of the Office of the Comptroller of the Currency, which has allowed national banks to expand their activities and liabilities across state lines.

Which of the Following Items Has Not Been a Factor