The wave of mergers, acquisitions and consolidations in the financial industry since
1994 changed the spatial environment. This paper investigates features of core and peripheral
metropolitan areas in Ohio. From a spatial perspective, the Cleveland metropolitan area possesses
financial characteristics more closely matched to those of a high-end benchmark financial-
core such as Charlotte, North Carolina than to those of medium-size MSAs within the state.
Findings suggest that medium-size MSAs are unlikely to be financial-core areas and that they
are not evolving in that direction. Although peripheral areas lack a comparative advantage for
developing depth and breath of financial services and are subject to a retailing function from
large out-of-market institutions, there was no explicit evidence of funds drainage from medium-
size peripheral areas because of compliance with the Community Reinvestment Act.
