Do government officials have a plot to reduce the size of the banking industry? It is a question Timothy Koch asked during two presentations he made at the fall seminar of the Bank Holding Company Association, conducted Oct. 5-6 in Bloomington, Minn. Koch, a professor at the Moore School of Business at the University of South Carolina and president of the Graduate School of Banking at Colorado, said regulators are implementing policies which will decrease the size of the industry.