House committee passes regulatory relief bill

Northwestern Financial Review, Jun 15-Jun 30, 2003

The House Financial Services Committee has passed a broad regulatory relief bill for U.S. banks, as well as legislation that streamlines the check-clearing process. Both measures passed on voice votes. One provision in the reg relief bill would allow banks to expand across state lines without impediment.

Banks currently have to acquire another bank to move across state lines, unless the new state has a law specifically permitting de novo branching. A controversial provision grants such powers to industrial loan corporations. Bank industry groups are worried that the provision will allow companies such as Wal-Mart to purchase an industrial bank in one state and expand it nationwide.