Show RADICAL CHANGES TRANSFORM BANKING national commission sees changing opinion on branch banking issue studies group and chain banks NEW modification of the attitude 0 of banters ban leers on the long disputed branch banking question Is forecast in a review and report covering rapid changes going on in banking issued here by the economic policy commission of 0 the american bankers association cia tion the report however after referring to recent proposals that national banks be given branch banking powers within the business territory surrounding their location declares that we do not believe that so called trade area branch banking to Is likely to gain the support of any large percentage ot of the tha banking fraternity the commission says that the most important development that has haa affected american banking in recent years involves the rapid growth of 0 multiple banking organizations in the form of group chain and branch banking systems and adds that we present this report oa ae an unprejudiced economic ec study and have no theoties theories or orO policies to urge at this time the statement says that the commissions information indicates there are now group or chain bank systems which control 1922 banks and in aggregate resources and that there are only six states and the district of columbia where it does not find any group organizations th the investigation we have been b en in touch with the tha md managers geri of many important bank groups the tha report says aside from the obvious economies of centralized operation and control a number ot of these organization heads very frankly tell us that they do not feel that the system has been in operation and tested long enough to justify them la in making positive or sweeping statements m cats as to its advantages or disadvantages compared to unit banking the banking and currency committee cittee ot of the house which la is conducting an investigation into banking developments lias has called a number of operating heads of some of the great gro group p systems these men declared that they found under certain conditions definite operating and economic advantage in both group and branch banking over ever independent unit banking some thought group banking was only a transitional stage that branch banking was vaa preferable and it it were permitted on an extensive enough scale ecale they would change their groups over to branch systems others hold held that group banking was preferable prefer alle some hold held that the ideal plan was a combination of the two with group bank units tor for localities strong enough to support complete banking institutions and with branch offices extending further into the smaller places requiring banking services but not large enough to support complete banks several ot of these who advocated multiple banking declared that nevertheless they believed there would always be TOOM room tor for vigorous independent unit bank competitors government Govern meat officials official express views the comptroller ot of the currency recommended that natla national nal banks be given branch banking powers within areas the governor loveta or of the tha federal reserve board appeared to be in general agreement with the comptroller he said there were banks banka and ZW branches a total of banking offices that la in this total 63 53 offices were either branches or bank members ot of groups or both leaving banking institutions that might be definitely termed independent unit banks having no branches and in no as way connected with group ho he sald said sa ld all the banks had total loans and investments of 0 of which the group and branch systems hold held or more than halt half he opposed nationwide nation wide branch banking at present but said that ultimately it bankers became trained and experienced in the larger technique of 0 trade area banking he thought it would in time evolve nationwide nation wide branch banking under control of relatively few banks but he did not cot belleve believe this would mean monopoly or jack ot of competition he layered branch over group grau p banking which however he be said eald represented an economic development along trade area lines and would spread unless something else were substituted and thought trade area branch banking would serve this purpose it to Is the intention ot of the commission to develop its own studies in these questions watch carefully every move that is made and every bit of information that may develop drive lop in this connection and keep itself prepared to give an unbiased and accurate statement ot of the facts facca of the tha case whenever neier that Is ide desired alred the report concludes |