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banks was challenged in recent years by the rise of "parallel markets,"
encompassing financial activities by smaller banking houses, building
societies (similar to SLAs in the U.S.), and other financial concerns, as
well as local government authorities. The major banks responded to this

competition by offering new services and competitive terms.
A restructuring in the banking industry took place in the late
1970s. The Banking Act of 1979 formalized Bank of England control

over the British banking system, previously supervised on an informal
basis. Only institutions approved by the Bank of England as "recognized
banks" or "licensed deposit-taking institutions" are permitted to accept
deposits from the public. The act also extended Bank of England control

over the new financial intermediaries that have flourished since 1960.
London has become the center of the Eurodollar market;
participants include financial institutions from all over the world. This

market, which began in the late 1950s and grew in some 25 years to an
estimated volume of $1 trillion, borrows and lends dollars and other
currencies outside the currency's home country (for example, franc

accounts held in any country other than France).

10. PSYCHOLOGY

Behavior Modification

Behavior modification comprises psychological methods for
treating maladjustment and for changing observable behavior patterns.

In the behavior modification process, the procedures used are monitored
so that changes can be made when necessary. Physical and mental
coercion, brain surgery, brainwashing, drug use, and psychotherapy are

often considered methods of behavior modification because they try to,
and frequently do, change behavior. None of them, however, is behavior
modification as the term is used in present-day psychology.

Behavior Modification Techniques

Some of the treatment techniques used in behavior therapy became

prominent enough to acquire specific names. Among them are
systematic desensitization, aversion therapy, and biofeedback.

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