Which U.S. law, enacted in 1994, allowed banks to branch across state lines?

The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 allowed banks to expand across U.S. state lines.

Signed by President Bill Clinton on September 29, 1994, the law removed major federal barriers that had restricted interstate banking and branching. It permitted bank holding companies to acquire banks in other states and, beginning in 1997, generally allowed interstate branching through mergers, subject to regulatory conditions and state rules.

The act was named for its congressional sponsors, Senator Donald Riegle and Representative Edward Neal. It did not simply create unlimited freedom for every bank overnight: institutions still had to meet safety, soundness, consumer-protection, and Community Reinvestment Act requirements. States could also impose certain conditions within the law’s framework.

A common mix-up is confusing Riegle-Neal with the Gramm-Leach-Bliley Act of 1999. Gramm-Leach-Bliley repealed key parts of Glass-Steagall and enabled broader combinations of banking, securities, and insurance businesses; Riegle-Neal chiefly addressed geographic expansion.