Douglas Amendment

AAA

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.

INVESTOPEDIA EXPLAINS '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. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  2. Bank

    A financial institution licensed as a receiver of deposits. There ...
  3. Federal Reserve System - FRS

    The central bank of the United States. The Fed, as it is commonly ...
  4. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  5. Subsidiary Bank

    A type of foreign bank that is incorporated in the host country ...
  6. TSA Pre

    This program allows travelers deemed low-risk by the Transportation ...
Related Articles
  1. Investing Basics

    The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.
  2. Fundamental Analysis

    Key Players In Mergers And Acquisitions

    Strategic acquisition is becoming a part of doing business. Discover the different types of investor groups involved.
  3. Bonds & Fixed Income

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.
  4. Bonds & Fixed Income

    Conglomerates: Risky Proposition?

    Investing in a corporate giant may not be as safe as you think.
  5. Mutual Funds & ETFs

    The Buy-Side Of The M&A Process

    With almost $2 trillion in sales yearly, find out how these mergers and acquisitions take place.
  6. Bonds & Fixed Income

    How Diaspora Bonds Work

    Developing and emerging nations with sizable populations living overseas are using diaspora bonds to raise financing from emigrants.
  7. Credit & Loans

    What is a bank's legal liability when issuing a letter of credit?

    Learn the responsibility of banks that issue letters of credit Letters of credits ensure payment on transactions between parties that have no relationship.
  8. Credit & Loans

    When are you legally required to get a letter of credit?

    Learn how exporters or importers who deal in international trade use letters of credit to ensure that transactions are safe, risk-free and successful.
  9. Professionals

    What's the average salary of an investment banker?

    Compare average annual salaries of investment bankers based on position. Different levels of the career result in different levels of base payment and bonuses.
  10. Credit & Loans

    P2P Loans: Consider the Payoffs; Assess The Risks

    The available data seems to indicate that P2P loans, although risky, promise great payoffs, and the prospects of good returns seem to be getting brighter.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center