Bank holding companies that want to achieve some reduction in earnings risk through interstate banking,can achieve the same level of risk reduction by entering any of the fifty states.

Question

Quizplus · Accepted Answer

Interstate banking allows bank holding companies to diversify their portfolio and reduce earnings risk, but not all states offer the same level of economic stability and growth potential. Therefore, entering any state does not necessarily achieve the same level of risk reduction.

Bank Holding Companies That Want to Achieve Some Reduction in Earnings