INTERSTATE BANKING FINALLY ARRIVES

President Clinton signed a new law on Thursday that should make it easier for you to do your banking across state lines. The Interstate Banking and Branching Efficiency Act allows banks for the first time to establish branches anywhere in the country. Up till now, banks have been able to operate across state lines only by forming separate corporate entities for each state. That meant you could not make a deposit outside the state where your account was based, although you could make withdrawals. But soon you should be able to perform any transaction at any branch of your bank, regardless of its location. Analysts expect the new legislation to spur a rash of mergers, ultimately reducing the number of banks from the current 11,000 to about 5,000 over the next few years. That could bring greater competition, better service and lower fees.