AN ANALYSIS ON THE CHANGES IN THE MANAGEMENT AND ADMINISTRATION OF AMERICAN BANKS Li Zhihui (42) In 1998-1999, two major events highlighted the remarkable changes in American co mmercial banks. The first was the merge of Citicorp and Travelers Group into one of the largest American financial groups. The second was Congress adoption of the Modernization of Financial Service Act in November 1999 that discards the di vision in administering banking businesses by trades and encourages joint manag e ment of banks, securities, and insurances. The article analyzes major changes in the environment for the management of American commercial competition among ban ks. It identifies financial innovations, government deregulation, asset securiti zation, financial globalization, and technological advances as the major causes of these changes.