1 In the early 20th century, some U.S. state governments (e.g., Illinois) banned banks from opening multiple branches even within the state. A common explanation for this choice is that: 1 point Larger banks might exploit monopoly power over customers. Larger, more geographically diversified banks might be more resilient. Smaller banks might be too-big-to-fail. Smaller, less geographically diversified banks might be more resilient