The First One Hundred Years of Banking in North Carolina

Abstract

This article is written on the occasion of the bicentennial of the first state banks in North Carolina, and reviews the first one hundred years of banking in the state. The article is part of a larger project exploring the reasons for the remarkable success of North Carolina banks and attempting to identify important themes that may have fostered this rise to national prominence.

The article describes the role of state banks in issuing state bank notes (which served as paper currency), the demise of state banks following the Civil War, and the rebirth of banking in North Carolina with the newly created national banks and newly formed state banks. It is ironic that the state that is now second only to New York in banking assets located in a state, was the last of the original thirteen states to charter a bank, and in 1931 was the last of the forty-eight states to establish a state bank regulatory agency. The liberal attitude of the state's legislature towards branching - which may have been fostered by the state's rural character - is, however, certainly an important backdrop for the later national success.

Keywords: Banking, bank history, bank branching

JEL Classification: G2, G21, K2, K22, N2, N21