Banking/Addendum

United States Banking Legislation

(abridged from the FDIC's "Important Banking Legislation" [1])

• National Bank Act of 1864

Established a national banking system and the chartering of national banks.

• Federal Reserve Act of 1913

Established the Federal Reserve System

• Amendment of the National Banking Laws and the Federal Reserve Act

(also known as The McFadden Act) Prohibited interstate banking.

• Banking Act of 1933 .

(also known as the Glass-Steagall Act). Created the Federal Deposit Insurance Corporation. Separated commercial banking from investment banking.

• Bank Holding Company Act of 1956

Required Federal Reserve Board approval for the establishment of a bank holding company. Prohibited bank holding companies in one state from acquiring a bank in another state.

• International Banking Act of 1978 .

Brought foreign banks within the federal regulatory framework. Required deposit insurance for branches of foreign banks engaged in retail deposit taking in the U.S.

• Depository Institutions Deregulation and Monetary Control Act of 1980
• Depository Institutions Act of 1982

(also known as Garn-St Germain). Expanded FDIC powers to assist troubled banks.

• Gramm-Leach-Bliley Act of 1999

Repealed the Glass Steagall Act of 1933, and introduced other changes including expanding the Federal Home Loan Bank System.

Reserve ratios

(Bank equity, per cent of assets)

	1880	1920	1940	1980	2005
United States	24	11	10	5
United Kingdom	11	5	5	5	4

(Source: Andrew Haldane Banking on the State, Bank for International Settlements[2])