Chapter 25: The Banking System and Financial Services
| A | B |
|---|---|
| commercial bank | A bank that offers a full range of financial services. |
| Federal Reserve System (Fed) | A nationwide banking plan set up by our federal government to supervise and regulate member banks. |
| interest | An amount paid for the use of money. |
Which financial institutions offer full banking services to individuals and businesses?
Chapter 24
| Term | Definition |
|---|---|
| Currency | Both coins and paper money |
| Commercial Bank | A financial institution that offers full banking services to individuals and businesses |
| Savings and Loan Association (S&L) | Financial institutions that traditionally loaned money to people buying homes |
Who are the regulators for state chartered banks?
In the case of state-chartered banks, they are regulated by the Federal Reserve Board for banks that are members of the Federal Reserve System. As for other state-chartered banks, they fall under the purview of the Federal Deposit Insurance Corporation, which insures them. Various state banking regulators also supervise the state banks.
What makes a bank a financial holding company?
Financial Holding Companies. Amendments to the BHC Act in 1999, i.e., The Gramm-Leach-Bliley Act, allowed for a BHC to declare itself a financial holding company (FHC) and thereby engage in financial activities, including securities underwriting and dealing, insurance agency and underwriting activities, and merchant banking activities.
When was investment banking separated from commercial banking?
In the United States, commercial banking and investment banking were separated by the Glass–Steagall Act, which was repealed in 1999. The repeal led to more “universal banks” offering an even greater range of services.
Who is regulated by the Department of financial services?
Under Article XII-B of the Banking Law, the DFS licenses premium finance agencies and regulates the terms of the finance agreement. A Private Bank is a bank owned by an individual or a partnership. A Private Bank may engage in most commercial and investment banking activities.
