Concern for the social objective of an efficient financial system led several researchers durnng the 1960's to study economies of scale in financial intermediation. These studies were used to draw inferences regarding an optimal structure of financial institutions. Today, there is added reason for the concern for the social cost of providing financial intermediary services. Since 1966, deposit rate controls have been extended to savings and loan associations as well as other thrift institutions whereas the Banking Act of 1933 had previously extended these controls to commercial banks.