Document Type

Working Paper

Publication Date

1996

College/Unit

Regional Research Institute

Document Number

9624

Department/Program/Center

Regional Research Institute

Abstract

As banking systems have become more integrated on both the international and national scales, banks in peripheral regions have been purchased by larger banks headquartered outside those regions. These externally controlled banks allegedly siphon funds from the regions by taking deposits but curtailing their lending activity. Such a practice would retard regional economic development efforts by making it more difficult for local businesses and residents to obtain commercial and industrial loans.

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