The Depository Institutions Deregulation and Monetary Control Act enacted by Congress in March 1930 will significantly affect the competitive environment in which financial institutions operate. This act broadens both the asset and liability powers of savings and loan associations, mutual savings banks, and credit unions, opening opportunities for these institutions that traditionally have been limited to banks. In light of these new powers and the increasing erosion of both legal and economic differences between thrift institutions and banking organizations, thrifts have become important competitors in markets for banking services—especially for transaction or checking accounts. Logically, the presence of thrift institutions should carry greater weight in analysis of mergers between commercial banks and acquisitions of banks by bank holding companies.