Which act aimed at removing restrictions on interstate banking and enabling economies of scale?

The Interstate Banking Act specifically aimed to eliminate barriers to interstate banking, allowing banks to expand beyond their local and regional boundaries. This act enables financial institutions to operate across state lines, which fosters competition and promotes efficiencies by allowing banks to achieve economies of scale.

By facilitating the growth and expansion of banks into multiple states, the act contributed to a more integrated and competitive banking landscape. With reduced restrictions, banks can offer a broader range of services and reach a larger customer base, ultimately benefiting consumers and businesses alike through increased access to financial services and potentially lower costs.

The context of this legislation also matters. Prior to the Interstate Banking Act, banks faced numerous limitations that hindered their ability to operate outside their home states. This act marked a significant shift in banking policy during the 1980s, paving the way for further deregulation in the financial services industry.