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Monday, February 10, 2020 | History

3 edition of Issues to be considered while debating interstate bank branching found in the catalog.

Issues to be considered while debating interstate bank branching

United States. General Accounting Office

Issues to be considered while debating interstate bank branching

report

by United States. General Accounting Office

  • 29 Want to read
  • 30 Currently reading

Published by U.S. General Accounting Office in Washington, D.C .
Written in English

    Subjects:
  • Branch banks -- United States.

  • Edition Notes

    Statementby the Comptroller General of the United States.
    The Physical Object
    Pagination[17] p. ;
    Number of Pages17
    ID Numbers
    Open LibraryOL17827502M

    Large banks usually offer a wider array of products and services than smaller community banks because they have the volume necessary to make certain products, like credit cards, profitable. To be eligible, each depository institution controlled by the banking organization must be well-capitalized and well-managed as of the date the company submits its declaration, and it must have a satisfactory Community Reinvestment Act CRA rating from its primary bank regulator. I think there is an opportunity to bring in new technology. Another element to consider is the elimination of the Bank Holding Company Act section A, a law that deals with problems of passing assets between affiliated institutions. It could be the case that only those firms with previous securities activities through Section 20 exemptions were in a position to take immediate advantage of the new universal banking powers granted in the Gramm-Leach-Bliley Act.

    Few know, for example, that national chartered banks developed when governments wanted to raise money. Do you have any response to that, Mr. That is correct. It is in Riegle-Neal.

    The larger the cost savings and revenue benefits, the more quickly banks should respond to the legislation. You'd be able to accept deposits across state lines, which is now not permitted. Second, when the controller of the currency determines that the application of such State law would have a discriminatory effect on the branch in comparison with the effect of the application of such State laws would have with respect to branches of a bank chartered by the host State, so there has to be that particular finding that has to occur. Yeager More than five years have passed since Congress enacted the Gramm-Leach-Bliley Act, tearing down regulatory barriers that separated commercial banking, investment banking and insurance underwriting. They've got to keep modernizing the laws because not only will it help banks to operate better but more important, it will help consumers.


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Issues to be considered while debating interstate bank branching by United States. General Accounting Office Download PDF Ebook

No, I think we had better go on now. That universal banks did not contribute negatively to the s banking crisis is not proof that they are a good idea today.

First of all, the bank would be submitting to jurisdiction in every state where it is doing business and that can occasionally cause problems. Turning them over at the meeting of creditors will save you some time and bother.

Ultimately, though regulations like CRA may be compelling reasons for banks to reinvest in their communities, the competitive market mechanism provides an even greater stick: Banks that ignore profitable local investment opportunities do so at their peril because competitors would be only too happy to take the business away.

It is really six books in one — the banking histories of Britain, the United States, Canada, Mexico, and Brazil, and an analysis of how banks operate. Oh, broader than the national bank charter?

Shared Flashcard Set

I guess the proposed amendments focus on the application of host State laws to host branches of State-chartered institutions. Throughout most of the 20th century, local banks in the United States have been protected from both interstate and intrastate competition.

Indeed, our results are consistent with the view of Philadelphia Fed President Anthony Santomero, who wrote in that financial modernization is not a single event or law, but rather a relentless process of eroding the constraints placed on Issues to be considered while debating interstate bank branching book financial marketplace during the Great Depression.

Roadblocks at the Border The banking industry is one of the most heavily regulated industries in the United States and is arguably the most heavily regulated banking system in the world. Over the past years, the United States has seen 14 banking crises, compared with two in Canada.

Despite the potential for abuse from universal banking, today's financial environment is much more tightly regulated than the pre-Depression financial environment. Although written by economists, it does not economize on words, or footnotes, or references.

The McFadden Act and its subsequent amendments essentially prevented interstate branching, permitting national banks to branch only to the same extent as state banks, thus giving the states ultimate authority.

Many of the loan problems suffered by banks in the Southwest in the mids and in New England in the early s could have been mitigated had these banks had profitable loans in other parts of the country when their regional economies took a nose dive.

Although the number of U. I was going to, yes. Some analysts estimate the industry could save millions of dollars annually by eliminating the separate subsidiary requirement.

Between andthe proportion of banks affiliated with holding companies increased from 26 percent to 73 percent.

Intrastate Branching

Whatever the outcome in individual markets, the banking industry should emerge leaner and meaner from this road trip. A couple of responses. What is clear is that the act to date has not caused a financial revolution; rather, it has contributed to the deregulation of financial markets and institutions within the United States with remarkably little impact.

Under current legislation, a Boatmen's bank customer who lives in Illinois, across the river from St. In addition, investment bank affiliates did not drain equity from commercial banks. A waiver will be granted only to a redesignation within the applicant's home state.

After all this time, why is the gridlock on interstate banking and branching legislation finally breaking up? It could be the case that only those firms with previous securities activities through Section 20 exemptions were in a position to take immediate advantage of the new universal banking powers granted in the Gramm-Leach-Bliley Act.

We have interstate banking.

How will large bank operations be affected if interstate branching regulations are loosened?

Louis are affiliated Issues to be considered while debating interstate bank branching book the Boatmen's National Bank of St. There has been concern expressed by consumer groups, however, that allowing interstate mergers will result in large banks which may not be responsive to community needs.Intrastate branching means that a bank can have more than one office within its home state.

Fifty years ago, few banks had more than one office. Today, most banks can open offices (branches) across their states.

Bank branching originated at the state level, and the states have directed the expansion of banks’ geographic boundaries. Interstate Banking and Branching. In latethe d Congress authorized significant reforms to interstate banking and branching law.

The Interstate Banking Law (Pub. L. No. ), also referred to as the Riegle-Neal Interstate Banking and Branching Efficiency Act ofprovided the banking industry with major legislative changes. DALLAS, TEXAS Notice TO: not expect to participate in interstate branching.

The new approach works to address the added complexities of account management that could result for depository institutions that maintain multiple accounts ed Reserve Bank. This single account would be used to settle all credits and debits.First Interstate BancSystem, Inc., is a financial holding company for both the company and pdf primary banking subsidiary First Interstate Bank.

Both are based in Billings, Montana. History. The bank originated in as a single bank in Sheridan, Wyoming Founded: Sheridan, Wyoming, United States ().bank, the state in which the institution download pdf its principal office; b. With respect to a foreign bank, the home state of the foreign bank as determined in accordance with the International Banking Act of12 U.S.C.

§§et seq., and Article 18A of this Chapter or, if there.Issues To Be Considered While Debating Interstate Bank Branching This ebook summarizes GAO’s observations about administrative and process matters which should be addressed when the Congress considers changing the current laws pertaining to the interstate branching of commercial banks.