Focuses on the following three areas: (1) the impact of interstate banking on the structure of the banking industry; (2) the implications of removing interstate banking and branching laws on the safety and soundness of the banking industry; and (3) the risks associated with removing interstate banking and branching laws and ways to minimize such risks. Charts and tables.

Reviews the potential impact of lifting restrictions on interstate banking. Discusses experiences of three western states: California, Washington, and Arizona -- which have operated an environment permitting interstate banking and in-state branching. Charts and tables.