Show BANKERS FIND GROUP BANKING widespread over 13 billion dollars of bank assets in affiliated systems numbering 1850 members in nearly every state over 1850 1860 banks with more than thirteen billion dollars in resources are shown to be associated with chain or group banking systems in tho the united states in facts recently gathered by the economic policy commission ot of the american bankers association cia tion the chairman ot of the commission R S hecht ot of new orleans pointed but aut that the facts indicate that almost 7 per cent ot of our banks and ana over 18 per cent of 0 our banking resources are in the great net ot of group or chain banking that now covers almost every part of 0 the country the commissions facts comprised chain and group ba basking kang affiliations in the broadest sense ot of the term the report said ald they included those groups in which the controlling element was wall a particular bank there being reported 78 instances ot of this class involving banks and about in combined banking resources they included also groups in which a non banking holding min company pany not subsidiary to any particular bank was in control and ot of this class 28 instances Ini were found involving banks and nearly in resources the report also included groupings in which control was exercised by individual persons and these cases numbered involving 1071 banks and about in assets the total figures figure the total was over in aggregate some of 0 the systems comprised BO 56 to banks each head offices ot of the groups were found in all jurisdiction but nine ot of the states and the district of bt columbia we have not included in these figures the lepor says banking groups in which a commercial bank a trust company and an investment house bouse and sometimes a savings bank are re tied together by some form ot of stock holdings and operated as complementary tary elements in an organization rendering complete financial services we hava hata held that such groups group are similar to a departmentalized bank and different in the purposes and operations operation erat era tion ions from a chain or group banking system for purposes ot of the present report we deone chain or group banks as systems in which centralized control whether corporate or personal and either rigid or informal directs the operations ot of two or more complete banks not functionally complementary each working on its ita own capital and under its own personnel and located in one or more cities or states commenting on he question whether the rapid development ot of chain banking was in the nature ot of a reaction against restrictions imposed on branch banking by the banking laws in many states the report says say that observation does not wholly confirm this theory since chain banking in I 1 prevalent in somo some states where virtually no restriction Is imposed on trance banking as well as aa in those where here the establishment ot of branch banks banks is prohibit el it adds the tha question a 0 branch banking however the facts acts do show that anti branch banki banking nir laws have been a factor actor in some cases aud and probably in gome sections in the spread of chain banking instances instance have come to our attention where expansion along chain bank lines has hall been carried out by state banks expansion along branch bank lines line was stopped by the passing of state lows prohibiting further branches yet whether expansion would have been piong branch bank lines it the laws law tail imposed impose no barriers it Is impossible to say there lg is obviously a well developed banking opinion in some sections that the chain bank method bronya to outlying banks the strength and efficiency ot of a big organization without depriving them of their local individuality and sympathies la view of the mixed factors noted we feel it to Is unsafe to gener generalize Ll as to what bearing branch banking laws have on chain developments the recent era ot of rapid chain bank developments has haa found specific reflection in some state otate legislative ao tion tending to restrict or control chain or group banking also we find a sharp harp difference ot of opinion among state bank commissioners who have expressed their sentiments regarding ag chain banking in a foreword to the report rt issued in booklet lorm form IT im the association at its new york city headquarters chairman hecht taya lays that the economic policy commission does not take a stand in advocacy of 0 or in opposition to this now new method ot of concentrating cent rating banking resources through the affiliation ot of banks into groups and chaine but Is simply offering at as a fac act finding body what we believe Is I 1 the first complete national picture ot of this rapidly growing movement |