On Tuesday, the Government approved a plan for sweeping changes in the way it oversees banks.

State regulators oversee state-chartered banks, and have varying rules on the extent to which the institutions they regulate can invest in volatile securities.

But the Administration opposes that approach because it would rob the Treasury, which oversees nationally chartered banks, of a prominent role in banking issues.

The banking system consists of a central bank, the Bank Markazi, which issues currency and oversees all state and private banks.

At present, a hodgepodge of agencies that do not share information or coordinate activities effectively are charged with overseeing banks.

In recent years, some have called for a dual state and federal regulatory system for insurance similar to that which oversees state banks and national banks.

The Subcommittee on Financial Institutions oversees banks, savings associations, credit unions and other financial institutions, including deposit insurance, and e-commerce.

The Administration will also recommend a significant reorganization of the regulatory structure that oversees banks and savings associations.

Mr. Oxley's committee oversees Wall Street, banks and the insurance industry.

The new regulations were issued on Jan. 7 by the Office of the Comptroller of the Currency in the Treasury Department, which oversees national banks.