This could be a historic week for the banking industry, says David W. Kemper, chairman and chief executive officer of Commerce Bancshares, Inc.

Kemper, speaking to a group of area businessmen in Cape Girardeau Thursday, discussed banking and its future.

"In Washington, they are putting final touches on the interstate banking bill this week," said Kemper, whose company is headquartered in St. Louis. "This bill will allow interstate banking, and five years from now, the banking scene in Missouri could be dramatically different."

Kemper told the gathering that the business climate in the Midwest is good and that the trends are toward more consolidation.

"Four years ago, there were 14,000 banks in the U.S.," he said. "That figure has declined by about 5,000 since then, by the turn of the century, we could be down to 4,000 banks."

More community banks will be for sale because of regulations, predicted Kemper. Smaller banks realize they will have to provide a larger array of products, so they will be willing to sell out to larger banks.

Commerce Bancshares, one of the largest bank holding companies in Missouri, has acquired 15 banks over the past two years, including in Cape Girardeau.

"We have moved into other states," said Kemper,

"We're not considered a superbank," said Kemper. "We're the 70th largest bank in the country, so we're not a small bank. We call ourselves a Super Community Bank."

By that, explains Kemper, Commerce has enough size to be sophisticated in its offerings, but stays close to customers in the community.

Commerce operates in more than 170 locations in Missouri, Illinois and Kansas.

Kemper said he feels the banking industry is going to continue to consolidate.

Also speaking at Thursday's luncheon was Peter Mackie, of Commerce's Investment Management Group, who discussed financial and investments offered by the bank.