THE FUTURE OF SUPERVISION

An excerpt from the book Federal Regulation of Banking 1983-84 (1983), by Carter H. Golembe and David S. Holland, is presented. No account of the federal government's involvement in banking regulation can afford to overlook the changing characteristics of this regulation and the likelihood of major alterations in the future. Whether viewed in terms of structure, scope of authority, or method of operation, there is little reason to believe that federal regulation of banking will remain unchanged. In the years ahead there should be no significant lessening in the interest of the federal government in banks and their performance. So long as banks occupy a central position in the monetary system, the federal government must concern itself with their soundness and stability. The present tripartite system of bank regulation at the federal level, wherein most regulatory authority is divided among the three banking agencies, had scarcely been put in place in 1933 when recommendations were made concerning reorganization.