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Attachment to testimony of Chairman Alan Greenspan
H.R. 10, the Financial Services Act of 1998
Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
June 17, 1998

Attachment 3
National Bank Market Shares

Chart A3-1 shows the significant increase in market share for national banks in 1997 and early 1998, when the logic of interstate branching induced conversions mainly from state nonmember to national bank charters, as well as absorption by national banks of state banks through merger. Table A3-1 provides more detail on such shifts.



Table A3-1
Net Change in Commercial Bank Assets from De Novos, Mergers, and Charter Conversions
Assets ($ Billions)
1995-1998
 
National Banks
  1995 1996 1997 First 5
Mos. 1998
12/31/94-
06/09/1998

Additions From:          
De Novo Banks 4.0 6.5 7.6 0.8 18.9
Mergers with Other Charter Types 22.0 86.4 113.9 17.4 239.7
Charter Conversions 21.1 52.8 60.3 2.6 136.8

Total Additions 47.1 145.7 181.8 20.8 395.4
           
Deletions From:          
Failures 0.0 0.1 0.0 0.0 0.1
Mergers with Other Charter Types 16.2 136.5 7.6 2.8 163.1
Charter Conversions 49.7 6.0 0.9 2.8 59.4

Total Deletions 65.9 142.6 8.5 5.6 222.6
Net Increase In National Bank Assets from          
De Novos, Mergers, and Charter Conversions -18.8 3.1 173.3 15.2 172.8
 
State Banks
  1995 1996 1997 First 5
Mos. 1998
12/31/94-
06/09/1998

Additions From:          
De Novo Banks 8.0 2.6 2.4 1.0 14.0
Mergers with National Banks 16.2 136.5 7.6 2.8 163.1
Charter Conversions 51.0 9.1 18.2 2.8 81.1

Total Additions 75.2 148.2 28.2 6.6 258.2
           
Deletions From:          
Failures 0.7 0.0 0.0 0.0 0.7
Mergers with National Banks 22.0 86.4 113.9 17.4 239.7
Charter Conversions 18.9 52.4 45.7 2.2 119.2

Total Deletions 41.6 138.8 159.6 19.6 359.6
Net Increase In State Bank Assets from          
De Novos, Mergers, and Charter Conversions 33.6 9.4 -131.4 -13.0 -101.4


The memo panel of Table A3-2 also clearly indicates that interstate branching is dominated by national banks. The upper two panels of the table show the dominance of the national bank charter among the larger banks.

Table A3-2
Percent Distribution
Various Indicators of Relative Size
By Charter Class of Commercial Bank
As of March 31, 1998
Indicator Charter Class
National State Member State Nonmember
(OCC) (FR) (FDIC)
       
  Top 25 By Size
Consolidated Assets 70.6 29.4 0.0
Domestic Deposits 82.2 17.8 0.0
Offices in U.S. 92.2 7.8 0.0
       
  Top 50 By Size
Consolidated Assets 68.0 30.5 1.5
Domestic Deposits 75.9 21.8 2.3
Offices in U.S. 83.3 13.5 3.2
       
  All
Consolidated Assets 58.1 24.4 17.5
Domestic Deposits 58.4 18.6 23.0
Offices in U.S. 58.1 15.8 26.1
       
  Number of Banks Operating Full-service Facilities in:
2 states 37 8 23
3 states 13 6 2
4 states 3 2 0
5 states 2 0 1
More than 5 states 10 0 0

Main text | Attachment 1 | Attachment 2 | Attachment 3


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Last update: June 17, 1998, 11:00 AM