9  We are beginning to obtain cross-country evidence suggesting that opening up financial markets to foreign entry can also create benefits associated with macroeconomic stability (Barth, Caprio, and Levine, 2002). 10  Morgan, Rime, and Strahan (2004) and Kroszner and Strahan (2006).
In particular, the magnitude of business cycle shocks, estimated as the absolute value of deviations from expected employment growth, became smaller on average after interstate banking reform and the associated integration of the banking system.