Ignoring credit cards, which were widely used, the most commonly used instrument was direct deposit, a relatively old and well-established electronic technology. While an estimated 50 percent of households used direct deposit, this usage rate paled compared to that of the most commonly used means for transacting at a financial institution.
This change allows more banking companies that have limited access to the capital markets to take advantage of using debt in bank acquisitions. This helps foster local ownership of small banks. The change also exempts eligible small holding companies from consolidated risk-based capital rules, a significant burden reduction.