Only one state legislature, Hawaii's, continues to bar interstate banking.

He saw interstate banking coming, he says, and his options were limited.

The Administration does not want either weighed down by interstate banking.

"Full interstate banking will be a reality in 1990, or 1991," he declared.

Such a franchise would have considerable value, especially after interstate banking becomes more widespread.

Others were able to grow because of more friendly regulatory treatment in their states as interstate banking became possible.

It would not address interstate banking or the ability of banks to enter new businesses.

Still up for grabs is whether Congress will end curbs on interstate banking.

It has also sought to eliminate the barriers to interstate banking.

The acquisition is the first under Vermont's new interstate banking law.