McFadden Act of 1927

E407358

United States federal law banking regulation

The McFadden Act of 1927 was a U.S. federal law that regulated national banks’ branching and effectively restricted interstate banking, helping to shape the geographically fragmented structure of American banking for much of the 20th century.

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All labels observed (2)

Label	Occurrences
McFadden Act	1
McFadden Act of 1927 canonical	1

Statements (45)

Predicate	Object
instanceOf	United States federal law ⓘ banking regulation ⓘ
affects	availability of banking services across regions ⓘ competition among banks ⓘ
aimedAt	placing national banks on more equal footing with state-chartered banks within states ⓘ
allowed	national banks to branch within their home state to the extent permitted to state banks ⓘ
appliesTo	national banks ⓘ
consequence	increased vulnerability of local banks to regional economic shocks ⓘ large number of small banks relative to other countries ⓘ limited diversification of bank loan portfolios across regions ⓘ
country	United States of America ⓘ surface form: United States
effect	contributed to geographically fragmented U.S. banking system ⓘ limited national banks to branching within home state laws ⓘ maintained separation of banking markets across states ⓘ prevented nationwide branch banking by national banks ⓘ reinforced state-level control over bank branching ⓘ
enactedIn	1927 ⓘ
governs	location of branches of national banks ⓘ
historicalPeriod	20th-century United States banking history ⓘ
influenced	distribution of small unit banks in the United States ⓘ structure of U.S. commercial banking industry ⓘ
influencedBy	interests of small and rural banks ⓘ political opposition to large nationwide banks ⓘ
jurisdiction	United States government ⓘ surface form: federal government of the United States
legalStatus	in force in modified form until late 20th century ⓘ
longTermImpact	contributed to regional segmentation of U.S. banking markets ⓘ delayed emergence of nationwide branch banking in the United States ⓘ
partiallySupersededBy	Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ⓘ surface form: Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994
partOf	U.S. dual banking system framework ⓘ
policyGoal	preserve state autonomy in banking regulation ⓘ protect local banks from competition by large national banks ⓘ
primarySubject	branch banking ⓘ interstate banking ⓘ
prohibited	interstate branching by national banks except under narrow conditions ⓘ
regulates	branching of national banks ⓘ
regulatoryFocus	geographic expansion of bank offices ⓘ relationship between federal and state authority over banks ⓘ
relatedTo	Glass–Steagall Act ⓘ surface form: Glass–Steagall Act of 1933 Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 ⓘ surface form: Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994
restricts	interstate branching of national banks ⓘ
sector	financial services ⓘ
subjectArea	banking law ⓘ financial regulation ⓘ
timeInForce	most of the 20th century ⓘ
typeOfRestriction	geographic restriction on bank branching ⓘ

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 → relatedTo → McFadden Act of 1927 ⓘ

Riegle-Neal Act → relatedTo → McFadden Act of 1927 ⓘ

subject surface form: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

this entity surface form: McFadden Act