Banking Essay Research Paper

Banking Essay, Research Paper

& # 65279 ; Chapter 1

Typical commercial bank organisation. ? * Shareholders? * Board of Directors? *Chairman of the Board? * President? * Specific officer places,

divisions, and sections.

Customers must experience confident. Some Bankss are organized as bank keeping companies. The BHC owns the stock of the bank or Bankss and is under the

legal power of the Federal Reserve. Some BHC? s will come in into banking-related activities such as securities firm or insurance services. A bank keeping company can have

Bankss in more than one province, therefore easing interstate banking. It can be one bank or many Bankss.

The three maps of banking? Deposit map? *Most common type of demand sedimentation is the look intoing history. M1 which is defined as coin and

currency in circulation, demand sedimentations at Bankss ( with some exclusions ) , traveller? s cheques, and financess withdraw able on demand at other fiscal establishments. M1 is

the most widely quoted money supply figure because it reflects financess that are instantly available for spending.

& # 8211 ; the Payments map? *coin and currency,

cheques and electronic financess reassign? The Credit Function? * Loans, recognition

Chapter 2

Chronology

1791-1811 was the first bank of the U.S.

1811-1816 bank failures start to increase.

1816-1836 Congress attempts to make the 2nd bank of U.S.

1836-1863 pandemonium in the banking system

1863 National bank act formed and ratified

1913 Federal modesty act

1929 Stock market crashed

1933 Glass-Steagall act

1934 securities Exchange act

1935 went in to consequence

1970-1980 Disintermediation

1980 depositary establishments deregulating and pecuniary control act of 1980

1982 Garn & # 8211 ; ST Germain Act

1989 Firrea

1991 FDICIA ( FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT )

1992 cognize your client guidelines.

National Bank was created to transfuse public assurance in Bankss. National Bankss were in private owned but were chartered? authorized to carry on banking business-by

the federal authorities. Nationally charter Bankss have rigorous demands

National Bank Act? 1. Created national Bankss 2. created the office of he accountant of the currency ( its map was and still is to rent, analyze, and issue

ordinances regulating national Bankss. ) 3. Introduced the national bill, and 4. Established a system of needed militias.

Chapter 3

Creation of the Federal Reserve System- regulates money and recognition supples. The intent was to right the blemished cheque aggregation system, the

inflexible currency, and the pyrami

ded militias.

Board of Governors consists of seven members appointed by the president of the United provinces and confirmed by the Senate. 14 twelvemonth footings Board

duties are- Supervise the operations of the Federal Reserve System? Set modesty demands? Approve price reduction rates set by the 12 Reserve Bankss? appoint

three of the nine managers of each Reserve bank? O.K. the presidents of the Reserve Bankss? Direct the supervising and ordinance of member Bankss and bank

holing companies? analyze the operations of the Reserve Bankss? Represent the Federal Reserve System in its dealingss with the president and Congress

Functions of the Federal Reserve Bankss. Propose price reduction rates? Hold modesty balances of depositary establishments? lend at the price reduction rate to member

Bankss? furnish currency? Collect and clear cheques? Transfer financess for depositary establishments? handle U.S. authorities debit and recognition balances.

Federal Reserve services? Coin and currency? look into glade and aggregation? wire transportation? automated uncluttering house? colony? securities

safekeeping

Chapter 4

Deposit map is the traditional banking map of accepting financess of recognition to look intoing, nest eggs, and other types of sedimentation histories and, in the instance

of cheques, change overing them into useable, available financess.

Items deposited are coin and currency, cheques, bill of exchanges, traveller? s cheques, money orders, bonds, bond vouchers, interbank transportations, foreign currency,

foreign points, cheques drawn on other Bankss, negotiable notes, bill of exchanges with paperss attached, and all kinds of other points into their histories. A Hold is a limitation

on the payment of all or portion of the balance in an history.

Authority to Open histories the bank must set up the individuality of the individual opening the history, determine that the individual has the legal capacity to

open the history, and guarantee that the individual is authorized to open the history

Public financess Accounts is usage to depict all relationships opened for any section, bureau, authorization, or other constituent of any federal, province, of local

authorities or political subdivision.

Chapter 5

Cashier? s cheque is issued by a national bank and drawn on that bank: the bank is both the drawer and the drawee. A financial officer? s cheque is issued by a

province bank and drawn on that bank. Certified cheque is a cheque for which financess have been set aside by the bank on which it is drawn.

Particular indorsement is when merely a certain individual can negoitate the cheque. Restrictive indorsement the payee or the holder of the insrument, in add-on

to signinghis or her name, identifies the intent of the transportation and restricts the usage to which the instrument can be put.