Banking/Addendum

United States Banking Law

• 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[1]

Provided for the gradual elimination of all limitations on the rates of interest which are payable on deposits and accounts

• Depository Institutions Act of 1982

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

• Securities Industry Association v. Board of Governors (1984)[2]

Following a series of Supreme Court interpretations that relaxed the restrictions of the Glass-Steagall Act, the Court allowed a bank holding company to operate a discount brokerage firm.

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Repealed the Glass Steagall Act of 1933, and introduced other changes including expanding the Federal Home Loan Bank System.

• Wall Street Reform and Consumer Protection Act of 2009[3]

( See also the FDIC's "Important Banking Legislation" [4])

European banking legislation

• EC Directive 2006/48/EC[5], 2006

• Commission Directive 2009/27/EC[6] of 7 April 2009

• Proposal for a directive amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies[7] (Citizens' summary[8]).

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[9])