elineated, and procedures that may be employed in the effective costing of such products will be suggested.
A large number of specialized terms will be used in the proposed study, as the definition of the different types of contemporary financial services will be a major focal point in the proposed study. These terms will be defined at the points in the text of the proposed study where they are first used.
The research performed for the proposed study will focus on the broader aspect of the commercial banking industry of the financial services sector of the American economy. It is recognized that this approach may omit some types of financial services provided by specialized commercial banking institutions. The research that will be performed, however, will encompass the great majority of financial services provided by commercial banks in the United States.
Literature relevant to the problem that will be investigated in the proposed study is reviewed in this section. The literature review presented in this proposal is a portion of the larger literature review that will be a part of the thesis reporting the results of the proposed study. Literature is reviewed in this proposal in relation to (1) the development of the American banking system, (2) the regulation of the financial services sector in the United States, and (3) deposit protection policy.
Development of the American Banking System
Commercial banking in the United States developed "concurrently with the growth in population, agriculture and manufacturing output, and transportation facilities" in the country.1 Prior to 1791, there existed little need for commercial banks in the United States, because of the relatively low level of overall economic activity.2 The types of banks and their functions which existed in the early years of the United States were largely determined by state governments, because little federal control over banking existed....