Regulators will have enough information to supervise banks that branch across state lines, even though the banks will file fewer call reports, according to a General Accounting Office report.
Currently, holding companies must operate separate banks in different states. Each affiliated bank files its own call report. Under interstate branching, a holding company could combine these banks into a single institution, which would file just one call report. This means regulators will have less information on lending and deposit-taking activities within individual states, GAO said.