A Specific Component in the US Banking System: The State of Ohio

Deregulation of the US banking system in the 1980s and 1990s led to profound changes not only in the operating conditions of credit corporations but also in the territorial structure of the industry. A particularly important role was played by the gradual lifting of the historical ban on creating interstate branch networks, which allowed the most successful banking holding companies to expand into other regions and partially displace local businesses. Among the centers from which such commercial expansion took place were Columbus, Cleveland, and other cities in Ohio, which had significant economic foundations and human resources. Ohio's share of national totals, measured by the assets of bank holding companies, rose almost continuously until 2002–2003, but then began to decline under pressure from even stronger competitors. Meanwhile, in the early 2000s, as advancements in telecommunications increasingly enabled the remote distribution of internal corporate administrative functions, Ohio became a strategic hub for holdings from other states – primarily JPMorgan Chase from New York. To this day, Ohio reflects a dual, albeit uneven, success: the state holds a significant position in its own holdings’ assets (sixth or seventh place in the US), while also maintaining a leading role in the strategic presence (at the level of key subordinate banks) of holdings from other parts of the country. For Ohio, an old industrial state that had been struggling since the 1960s with the rise of new competitors with more advanced manufacturing, the growth of the banking sector (in both aspects noted) became a key part of the state's economic restructuring and an important source of job creation.

Ohio, Columbus, Cleveland, banks, holdings, competition