A state received no charter fees from banks incorporated in other states, so states prohibited out-of-state banks from operating in their territories--hence the prohibition on interstate banking originated in the states themselves and as a fiscal strategy rather than as a matter of optimal policy for banking and consumers.
BIS Review 43/2002  1  Regarding fiscal policies in the euro area, we have seen some worrying developments in the past few months. Against this background we call upon all member countries to honour the commitments made to achieve budgets that are close to balance or in surplus by 2003-04, in compliance with the framework of the Stability and Growth Pact.