Development Commercial Banking Managers

Within the context of this study purpose, definitions of contemporary financial services products will be provided, the problems associated with the costing of such products will be delineated, and procedures that may be employed in the effective costing of such products will be suggested.

A large number of specialized terms will be used in the proposed study, as the definition of the different types of contemporary financial services will be a major focal point in the proposed study. These terms will be defined at the points in the text of the proposed study where they are first used.

The research performed for the proposed study will focus on the broader aspect of the commercial banking industry of the financial services sector of the American economy. It is recognized that this approach may omit some types of financial services provided by specialized commercial banking institutions. The research that will be performed, however, will encompass the great majority of financial services provided by commercial banks in the United States

As the economy of the United States became more complex, it became necessary and desirable to extend greater regulatory controlover the banking industry. The results of this extension of control were, in part, (1) a more structured banking system, and (2) an ever increasing assumption of regulatory responsibility by the federal government, at the expense of state governments.6

In the 1990s, state governments continue to regulate state chartered banks within their jurisdictions. Almost all of these banks, however, are also subject to federal regulatory actions. Those banks with federal charters are subject only to federal regulatory actions. The principal federal banking regulatory actions deal with currency control, banking structure, competition, monetary control, and deposit insurance.

The fundamental objective of deregulation in the United States was the same, regardless of the particular industry which was being deregulated, and regardless of the extent to which a particular industry was being deregulated. This fundamental objective was to permit industries to operate in a free market.8 Although this fundamental objective applied regardless of the industry involved, it was tempered to some extent by the characteristics which were unique to each industry. Thus, it is more appropriate to say that the objective of deregulation was to permit, to the extent possible, free market conditions to prevail.

The banking decontrol acts also expanded the types of financial institutions (1) for which mandatory membership in the Federal Reserve System was required, or (2) to which regulation by the System was extended.

 

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