In 1995 Remarks by Thomas P. Vartanian to Community Bankers Association of North Carolina Remaining competitive in the banking business turns, in part, upon a bank's ability to discern future business trends and regulatory movements. Indeed, regulatory movements, whether driven by Congress or Federal regulators, often influence business and economic trends. Some regulatory movements are economically sensible, some are not. Nevertheless, understanding where regulation is likely to go can be a great advantage in developing a strategic business plan. In that regard, permit me to consider with you several regulatory trends that are likely to affect your businesses over the next few years.
Interstate banking is here.
Large institutions are planning on getting bigger and smaller institutions are evaluating their acquisition possibilities. Institutions in between are considering both alternatives, as well as how they can remain competitive in an environment where the industry is likely to experience marked consolidation. Indeed, the importance of this process is underscored by the OCC's recent opinion that it is possible that once a state opts out, federal law may forever preclude it from thereafter opting in. The walls between commerce and banking will continue to be torn down as Congress considers the various pending legislative proposals to repeal Glass-Steagall and allow commercial and financial entities to combine. The pros and cons will be diverse.