Douglas Amendment

DEFINITION of 'Douglas Amendment'

An amendment made to the Bank Holding Act of 1956. The Douglas Amendment prevented banks from acquiring banks across different states. However, a bank could seek an exception to this rule by getting the authorization of the state of the bank that is to be acquired. This exception was rarely granted though, and was only authorized in limited circumstances.

BREAKING DOWN 'Douglas Amendment'

In 1994, the Riegle-Neal Banking Act was introduced that allowed banks to acquire other banks in different states, effectively repealing the Douglas Amendment. As a result of allowing interstate bank acquisition, the U.S. experienced a period of increased consolidation and increases in bank sizes in the industry.








RELATED TERMS
  1. Amendment

    1. A change to one of the terms of a contract. Any type of contract ...
  2. Amended Return

    A return filed in order to make corrections to a tax return from ...
  3. Sixteenth Amendment

    The amendment within the Constitution that gives Congress the ...
  4. Interstate Banking

    The expansion of banking across state lines. Interstate banking ...
  5. Business Banking

    A company's financial dealings with an institution that provides ...
  6. State Bank

    A financial institution that has been chartered by a state to ...
Related Articles
  1. Investing

    Douglas Dynamics Stock Trades Ex-Dividend Thursday (PLOW)

    Douglas Dynamics will send its dividend payment on June 30 to shareholders of record as of June 20.
  2. Personal Finance

    Made A Mistake On Your Tax Return? Don't Panic

    You can always file an amended return. But the sooner you do it, the better.
  3. Managing Wealth

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  4. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  5. Markets

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  6. Managing Wealth

    2 Undervalued Bank Stocks (EVBS, CHFN)

    Banks in the industry sweet spot are positioned to perform.
  7. Trading

    Key Financial Ratios to Analyze Retail Banks

    Learn about key financial metrics that investors use to evaluate retail banks, and how the industry is fundamentally different from most other industries.
  8. Managing Wealth

    Banking Stress Tests: Would Yours Pass?

    In weaker economic times, banks may be tested by the government to see how safe they are.
  9. Investing

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  10. Markets

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
RELATED FAQS
  1. I already filed my income tax return, but my employer sent me another W2 form(1099 ...

  2. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  3. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
  4. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  5. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  6. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center