Today's News

WASHINGTON

The FDIC will release data this week detailing first-quarter deposit defections from the beleaguered Savings Association Insurance Fund. Page 2

The Comptroller's Office is asking banks to consider easing loan terms for drought-affected borrowers. Page 2

REGIONAL BANKING

Comerica has balked pundits' predictions that it would be acquired, strengthening itself through cost-cutting, a stock buyback, and sales of unprofitable businesses. Page 6

BankAmerica and Citibank, hoping to cash in on Poland's fast-growing economy, have announced Warsaw expansion plans. Page 7

MORTGAGES

Some economists are saying an end to tax deductibility of home mortgage interest wouldn't be a bad idea. Page 8

Iowa's Homeland Bankshares has committed $3.75 million to a lending effort targeting low- and moderate-income families. Page 8

MANAGEMENT STRATEGIES

In the United States, consolidation is creating ever more far-flung banking empires. But U.S. banks might learn a thing or two from studying how Royal Bank of Canada manages nationwide operations in its home country. The bank's chairman, John E. Cleghorn, says that competitive practices in the Canadian marketplace are fierce. Pullout section

COMMUNITY BANKING

Farm banks entered 1996 with solid capital and good profitability - and they'll need them to weather the problems on the horizon. Page 11

Shareholders of two New York City-area thrifts rejected efforts by investor Thomas Kahn to force sales. Page 11

INVESTMENT PRODUCTS

Summit Bancorp. in New Jersey is using the momentum from a recent merger to expand its investment sales force and launch a brokerage subsidiary. Page 14

Two Pennsylvania community banks are increasing fee income quickly by amassing investment accounts too small for big banks to covet. Page 15

CREDIT/DEBIT/ATMs

A hard sell and segmentation strategy are decisive for participation in the credit card acquiring industry's growth, write Mike Cliff and Marc Abbey. Page 16

SMALL BUSINESS

Newly chartered First Carolina Bank plans to position itself as a high- tech lender to small businesses. Page 22

TECHNOLOGY

Bank technology stocks struggled to hold on to recent gains amid investor concerns over inflation. Page 23

MARKET MONITOR

Rising delinquencies have made investors wary of most finance company stocks, although a few cutting-edge consumer lenders remain in market favor. Page 28

Short interest in Marshall & Ilsley rose 141% in the month ended May 15, the biggest jump among bank companies traded over the counter. Back page