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Full-Text Articles in Law
Cross-Border Bank Branching Under The Nafta: Public Choice And The Law Of Corporate Groups, Eric J. Gouvin
Cross-Border Bank Branching Under The Nafta: Public Choice And The Law Of Corporate Groups, Eric J. Gouvin
Faculty Scholarship
This Article examines a question left unresolved after the negotiation of the North American Free Trade Agreement (NAFTA): whether the banks of the member countries should be permitted to engage in the business of banking in the other member countries simply by branching across national borders. Under present law, the United States permits branching subject to extensive restrictions, while Canada and Mexico permit access to their banking markets only by acquisition or establishment of institutions chartered in their countries. While the NAFTA does not provide for unfettered branching across national borders, article 1403(3) of the NAFTA left the issue of …
Banking In North America: The Triumph Of Public Choice Over Public Policy, Eric J. Gouvin
Banking In North America: The Triumph Of Public Choice Over Public Policy, Eric J. Gouvin
Faculty Scholarship
This Article examines the state of cross-border banking in the NAFTA countries and the question of whether member country banks should be permitted to branch freely throughout North America. Under present law, the United States permits foreign banks to branch into its territory subject to extensive restrictions, Canada has indicated that it plans to eliminate some restrictions on foreign branching, and Mexico continues to permit access to its banking markets only by investment in or establishment of an institution chartered in Mexico. Article 1403(3) of the NAFTA left the issue of cross-border branching open to subsequent negotiation. If the decision …