Minnesota opened its borders to nationwide banking about six weeks ago, but the state's community bankers haven't seen much effect yet.
"It's kind of a nonevent," said James Morton, president and chief executive of $125 million-asset Fidelity Bank of Edina.
"At first blush, whether it's 16 states or 49 states, the effect on community banks may not be that significant," added James Miller, deputy commissioner of the Minnesota Department of Commerce.
On April 22, Minnesota extended its interstate banking law from 16 states to nationwide reciprocity.
Reciprocal nationwide banking, which nearly half of the states have already adopted, allows a bank holding company in any state to acquire a Minnesota bank, provided that the same state grants Minnesota reciprocal rights of entry.
While the new law has not meant a wave of acquisitions, some community bankers see stiffer competition ahead and more small banks selling out.
"I think more and more community banks will be sold, particularly in the metropolitan areas," said Richard Bliss, president and chief executive of $107 million-asset First National Bank of Wayzata.
"We're going to stay independent."
Mr. Bliss wouldn't be surprised if Detroit-based NBD Bancorp, Charlotte-based NationsBank Corp. and Banc One Corp. of Columbus, Ohio, enter the market.
Minnesota already had regional interstate banking agreements with 16 states, mainly throughout the Midwest.
Its new law brings the number of states allowing national reciprocal interstate banking to 23.
Another State Due in '96
In addition, North Carolina has regional reciprocal banking with a national trigger in 1996.
As Minnesota previously did, 14 states allow interstate banking with a certain named group of other states, as does the District of Columbia.
Twelve states allow national nonreciprocal interstate banking.
