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Compromise on interstate banking clears Congress quickly
House and Senate negotiators resolved differences on a broad interstate banking bill that would lift most barriers to operating across states. It would allow bank holding companies to acquire banks nationwide after enactment and permit consolidations into a single branch network after 1997, boosting efficiency but likely reducing local control and jobs while expanding banking options and resilience. The measure includes a rural and urban lending fund of 382 million over four years and aims to curb reverse redlining while easing exams for healthy small banks and expanding small-business loan markets.
MENTIONED IN THIS ARTICLE
Washington
House
Senate
Phil Gramm
Texas
Congressional Banking Committees
Clinton
Federal Reserve