Durbin Interchange Fallout: Bank Branch Closings Posted by AVCU on 2:11 PM

The American Banker publication reports that International Bancshares Corp. in Texas is closing 55 grocery store branches in response to the interchange legislation enacted by Congress that caps what banks can charge merchants for debit card transactions beginning October 1st. 

The $11.8 billion institution is closing the branches so that it can continue to offer free checking to its customers after new interchange limits are imposed on over $10B institutions. Since the measure was passed last year, many large and regional banks have dropped free checking due to anticipated loss of revenue. IBC expects to eliminate about 500 jobs as a result of the branch closings.