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Banking in the United States & Federal Reserve System

Banking in the United StatesBanking in the United States is regulated by both federal reserve and state governments On December 31, 2011, the five largest banks in the United States were JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs. In December 2011, the property of the five largest bank was equal to 56 percent of the US economy, compared to 43 percent compared to five years ago.

In the American financial industry, only 10% of total non-agricultural trade profits were included in 1947, but by 2010, it was 50%. In the same period, the income of the finance industry increased from 2.5% to 7.5%, and the ratio of all corporate income from the finance industry increased from 10% to 20%. Compared to all other sectors, the average income per employee in the economy has been closely monitored for the total American income share earned by top 1% of the income earners since 1930. The average salary in New York City’s finance industry increased from $ 80,000 to $ 360,000 in 2011, while the average New York City salary increased from $ 40,000 to $ 70,000. In 1988, there were about 12,500 American banks, which were less than $ 300 million and with more than 900 deposits, but by 2012, there were a total of 4,200 banks in the US, which was less than $ 300 million, and Was accumulated with more than 1800. American banking is closely linked to the UK; In 2014, the largest American banks had about 70 percent of them and off-balance sheet foreign assets.

Regulatory bodies

Bank regulation is highly disintegrated in the United States compared to other G-10 countries. Although most of these countries are in the U.S. There is only one bank regulator, while banking is controlled at both federal and state level. Depending on your type of charter and organizational structure, a banking organization may be subject to many federal and state banking rules. Contrary to Japan and the United Kingdom (where regulatory authority on banking, securities, and insurance industries is found in a single financial services agency), the US holds separate securities, commodities, and insurance regulatory agencies – different regulatory agencies from the bank regulatory agencies And state level

U.S. Banking regulation promotes lending for privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, non-profit credit, and low-income populations. In some different cities, their financial regulation laws also apply (for example, defining what generous borrowing is).

Since the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1989 (FDICIIA), all commercial banks who accept deposits are entitled to receive FDIC insurance and are members of a primary federal regulatory body (the Federal Reserve System, “non- Office of the Currency Controller’s Office for Members “FDIC for State Banks, and all National Banks and Federal Savings Banks (FSBs).

Federal Credit Unions are regulated by the National Credit Union Administration (NCUA).

Federal Reserve System

The central banking system of the United States, which is called the Federal Reserve System, was created in 1913 under the enactment of the Federal Reserve Act, which was largely a financial panic, especially in 1907, the reaction of severe terror. And the responsibilities of the Federal Reserve System have expanded and its structure has evolved. Entries such as Great Depression are the major factors that change the system. According to the official Federal Reserve document today, the country’s monetary policy is to be governed, monitoring and regulating banking institutions, maintaining the financial system and providing financial services to depository institutions, the US government, and foreign official organizations.

federal reserve

The structure of the Federal Reserve System is governed by the President of the Board of Governors (or the Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve Regional Federal Reserve Banks, are located in large cities across the country, many privately owned US member banks and various Advisory Councils (see structure) is a responsible committee for the establishment of FOMC monetary policy and in this case, all of the Board of Governors Seven members are included and twelve regional bank presidents, although only five bank presidents vote at any time; Its Constitution is regulated by Senator Riggle and Challenged in the FOM, 656 US 873 (1981) certificate 454 US 1082 (1981) denied, but the court refused to rule over the properties, the difference on equity (opposite free anti Afand v. PCAob). The central bank’s responsibilities have been divided into several separate and independent parts, some private and some public consequences are such structures that are considered unique among the central banks. It is also uncommon that a unit outside the central bank, i.e. the United States Department of Treasury, uses the currency.

According to the Board of Governors, the Federal Reserve is independent within the government that “its decision will not be ratified by anyone in the executive or legislative branch of the President or the government.” However, it has been taken from the US Congress and it is under the inspection of the Congress. In addition, members of the Board of Governors, including its President and Vice President, are elected by the President and confirmed by the Congress. The government also controls some of the federal reserves, which employs and sets the salaries of employees of the highest level of the system. Thus there are both private and public aspects in the Federal Reserve. U.S. The government receives the annual benefits of all the systems, after 6% of the statutory dividend on the member bank’s capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $ 82 billion and the U.S. $ 79 billion in the Treasury moved.

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a corporation of the United States government created by the 1933 Glass-Steagall Act. This deposit provides insurance, which guarantees the security of the deposited amount in the banks, up to $ 250,000 per bank depositor per bank till November 18, 2010, FDIC deposited at 6,800 institutions. FDIC also investigates and supervises the safety and soundness of some financial institutions, some consumer protection works, and manages the banks in receivership (failed banks).

Since the beginning of FDIC insurance on January 1, 1934, no depositor has opened any insured money as a result of the failure of the bank.

Office of the Currency Controller

The Office of the Controller of Currency is a U.S. federal agency established by the National Currency Act of 1863 and serves the charter, regulation, and monitoring of all national banks and federal branches and agencies of foreign banks in the United States. Thomas J. Currie was sworn in as the 30th Comptroller of Currency on April 9, 2012.

The Office of Threat Supervision

The Office of Threat Supervision is a United States federal agency under the Department of Treasury, it was created in 1989 as a renamed version of another federal agency (it was faulty for its role in saving and debt crisis). Other U.S. Like federal bank regulators, this is paid by banks that govern it. On July 21, 2011, the Office of Threat Supervision became part of the Office of the Controller of Currency.

Active bank of the United States

The list of several commercial banks in the United States can be found on the FDIC website. According to the FDIC, till February 11, 2014, there were 6799 FDIC-insured commercial banks in the United States. Every member of the Federal Reserve System has been listed with non-members, who are also insured by FDIC. The list does not include banks and investments which are not FDIC-insurance; However, since the FDIC Reform Act of 1989, all commercial bank deposits should accept FDIC-insurance

In 2011, the five largest banks in the property were JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs.

Banking mergers and closures

In general business, the bank merged due to several reasons, for example, to make a large bank in which the operations of both banks can be streamlined; To achieve another bank’s brands; Or due to the regulatory closing of the institution due to inadequate business practices or inadequate capitalization and liquidity.

Banks in the United States can not go bankrupt Depositor accounts have been insured by FDIC up to $ 250,000 per person per bank per October 2008. Banks in danger of being unsuccessful are either acquired by FDIC, are temporarily administered, then sold or merged with other banks. FDIC maintains a list of banks showing the regulators and institutions confiscated by the assuming institutions.


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