one or more coordinators to facilitate international and inter - industry cooperation. the specifics need to be clarified, but you should all be aware of this international initiative, while also recognizing that more work remains to be done in this country to deal with the complex issues that arise from the international and inter - industry activities of these firms. domestic supervision of foreign banking organizations moving now from asia to domestic issues, the international banking act ( iba ) is perhaps the most notable of the laws governing the activities of foreign banking organizations ( fbos ) here in the united states. the iba requires, among other things, that, in order to approve a branch application, the board must determine that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by its home country supervisor. this requirement, as you are undoubtedly aware, is commonly known by the initials ccs. i believe that the federal reserve should continue to be rigorous in applying the ccs standard. the board should also take great care in allowing entry into the united states by foreign banks from a country where ccs is not yet in place. in these countries, appropriate conditions could be imposed on the operations of the us branch to help compensate for the lack of full ccs. finally, let me raise an issue that symbolizes our global interdependence : the major challenge of being ready to turn the calendar page on december 31, 1999. as you are all well aware, the federal reserve, as well as the other banking agencies, have a keen interest in the year 2000 readiness of all banks in the united states and overseas. while all banks must address year 2000 readiness issues within their organizations, the issue appears to pose special problems for foreign banks operating branches and agencies in the united states. to address the year 2000 problem for these banks, and international banking generally, the federal reserve is taking an active role in a number of international initiatives, most notably including the joint year 2000 council, which is jointly sponsored by the major international bodies for cooperation between financial market regulators. the joint year 2000 council has made a good start at its task. i am sure that it will continue to raise the visibility of this issue, help all countries recognize the magnitude of the year 2000 challenge, and provide guidance to and assistance for supervisors and financial market participants in understanding the steps they need to take to meet the challenge. i refer you in particular to the council ’ s current paper on guidance to supervisors, which gives concrete steps on assessing preparations by

as those for retail products and services, sometimes experience problems from consolidation. thus, as with other issues addressed by our study, a case - by - case evaluation of the relevant facts is required. conclusion in conclusion, financial consolidation clearly is a powerful force that is deeply affecting the evolution of the financial system of the united states and many other nations. a thorough understanding of this force and its potential effects is critical for prudent decision - making in both the public and the private sectors. i believe the study that i have just summarized takes some major steps toward that understanding, and i hope that my remarks have helped you to comprehend our study's findings and implications. still, all of us have much to learn, and much of what we know today will almost surely change in the future. i commend the organizers of this conference for seeking to advance our knowledge, and i again thank you for inviting me to contribute.