[Federal Register Volume 60, Number 121 (Friday, June 23, 1995)]
[Notices]
[Pages 32732-32733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15343]



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DEPARTMENT OF THE TREASURY

Study of the United States Financial Services System

AGENCY: Department of the Treasury.

ACTION: Request for comments.

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SUMMARY: The Secretary of the Treasury (Secretary) is conducting a 
study of the strengths and weaknesses of the United States financial 
services system in meeting the needs of the system's users. We 
encourage all interested parties to submit written comments on the 
topics set forth below.

DATES: Comments must be received by August 22, 1995.

ADDRESSES: Interested parties are requested to submit written data, 
views, or arguments. A public file containing all the public comments 
will be maintained at the Department of the Treasury.
    Comments should be sent via mail or facsimile to:
    Study of the United States Financial Services System, Department of 
the Treasury, Room 3025, 1500 Pennsylvania Avenue, NW, Washington, DC 
20220. Fax number 202/622-0256.

FOR FURTHER INFORMATION CONTACT:
For further information contact Joan Affleck-Smith, Director, Office of 
Financial Institutions Policy, 202/622-2740.

SUPPLEMENTARY INFORMATION: On September 29, 1994, the President signed 
into law the Riegle-Neal Interstate Banking and Branching Efficiency 
Act of 1994. Section 210 of the Act requires the Secretary to conduct a 
study that assesses the [[Page 32733]] strengths and weaknesses of the 
United States financial services system in meeting the needs of its 
users, including the needs of: (1) Individual consumers and households; 
(2) communities; (3) agriculture; (4) small-, medium-, and large-sized 
businesses; (5) governmental and non-profit entities; and (6) exporters 
and other users of international financial services. The Act requires 
the Secretary to report to Congress by December 29, 1995, on the 
results of the study, including any recommendations.
    The Act also requires the Secretary, in conducting the study, to 
consult with an Advisory Commission on Financial Services, to be 
appointed by the Secretary, and with the following governmental 
agencies: The Board of Governors of the Federal Reserve System; the 
Commodity Futures Trading Commission; the Office of the Comptroller of 
the Currency; the Office of Thrift Supervision; the Federal Deposit 
Insurance Corporation; the Department of Housing and Urban Development; 
the Securities and Exchange Commission; the Congressional Budget 
Office; and the General Accounting Office.
    The Act requires the Secretary to consider:
     The effects that changes in the national economy, 
international economy, and the financial services industry will have on 
the ability of the financial services system to meet the needs of the 
national economy and the system's users; and
     The adequacy of the existing legal and regulatory 
framework of the financial services system to meet the needs of the 
system's users.
    Based on the results of the study, the Secretary may make 
recommendations, as appropriate, for changes in statutes, regulations, 
and policies to improve the operation of the financial services system, 
including changes to better: (1) Meet the needs of, and assure access 
to the system for, current and potential users; (2) promote economic 
growth; (3) protect consumers; (4) promote competition and efficiency; 
(5) avoid risk to the taxpayers; (6) control systemic risk; and (7) 
eliminate discrimination.

Background

    The United States financial services system has changed rapidly and 
significantly in recent years. The more important changes have 
included:
    (1) The growing importance of non-traditional, unregulated 
financial intermediaries in providing a broad array of lending, saving, 
payment, and investment services in competition with traditional, 
regulated depository institutions;
    (2) The globalization of financial markets as financial services 
providers compete in the U.S. and abroad to meet the needs of their 
internationally engaged customers; and
    (3) Innovations in information and telecommunications technologies 
that permit creation of new financial products and new ways to package 
and distribute existing products.
    Because of these changes, it is appropriate that consideration be 
given to the needs of users of financial services as the financial 
services industry evolves.

Questions for Respondents

    Respondents (both users and providers of financial services) should 
build their responses around the two core questions posed in the 
legislation requiring this study. These questions are:
    1. What effect will changes in the national and international 
economies have on the ability of the U.S. financial services system to 
meet your needs as a user of financial services?
    2. Is the existing legal and regulatory framework of the U.S. 
financial services system adequate to meet your needs as a user of 
financial services? What changes in that framework would better enable 
providers of financial services to meet your needs?
    Respondents should assess the strengths and weaknesses of the U.S. 
financial services system as completely as possible from their 
perspective as users or providers. These responses will help identify 
specific user needs (for example, access by small businesses to credit 
and capital) and the changes appropriate to help meet those needs.

    Dated: June 12, 1995.
Richard S. Carnell,
Assistant Secretary (Financial Institutions), Department of the 
Treasury.
[FR Doc. 95-15343 Filed 6-22-95; 8:45 am]
BILLING CODE 4810-25-M