Banking sectors in the U.S. occurs after declaring independence. The U.S. banking system generally includes a central issue Bank, commercial banks and special credit institutions. On 23/12/1913, the U.S. Congress, as the supreme legislative body, adopted the Federal Reserve System, also known as Federal reserve act. It creates a central bank of issue of the U.S.. The activity of the Federal Reserve System was initially designed exclusively for the assistance of other banks in times of economic disturbances and to preserves public confidence in the banking system as a whole. In organisation structure of the Federal Reserve System are highlight the following key points:
- Board of Governors Federal Reserve System
- Twelve Federal Reserve Banks
- Federal Committee on the open money market
- Federal Advisory Council
Board of Governors is composed of seven permanent members appointed by the President of the United States. Its headquarters in Washington. Each of its members are elected for seven years and is entitled to at least 2 consecutive terms. It is relatively independent and have the necessary powers to establish minimum required reserves of commercial banks with the central bank to conduct transactions with securities on the open money market and carry out their discount policy. The activities of the Board of Governors shall be assisted by a considerable number of economic and legal assistants.
Federal Reserve Bank operating under the control of the Board of Governors and putting into practice the guidelines of its monetary and credit policy in their respective counties. All national banks in the U.S. are required to join the Federal Reserve System, and state banks may join if desired. The system now includes about 6,000 commercial banks, which account for more than 70% of deposits. The capital of the 12 reserve banks formed mainly by contributions from banks, members of the system. Against paid-in capital received last devidenti certain of its shares. Federal Reserve Bank do not aim to maximize profits and to implement regulation of the credit system as a whole. Therefore, more than 90% of income paid to the budget.The activity of the Federal Reserve System is particularly important policy of the open money market. Not accidentally as a separate unit in 1953 it was organized Federal Committee oktritiya money market. It is composed of 12 members – 7-something members of the Board of Governors and 5 presidents of the team from various Federal Reserve banks. Federal Reserve System is not subject to government and is independent of the executive. It is a working body of the U.S. Congress. As such Tsentralnta Bank each year submit to it a report on its activities. U.S. commercial banks accept deposits, grant loans and mainly serve to the payments turnover. Some U.S. banks are known as one of the largest in the world, but most U.S. banks are relatively small. The most common are banks without branches. Legislation severely limits the ability to open bank branches outside the state concerned, and in some states are generally prohibited the opening of bank branches. That is why the U.S. operate numerous but not particularly large banks. Half of them have assets of between 10 and 50 million dollars. The 10 largest U.S. banks account for less than 30% of bank assets.Another feature of the U.S. banking system is razgranizachaneto of commercial banks into two groups – national and state banks. Banks called national are licensed to carry on banking business by the federal government and state are banks that are licensed by the authorities of different states. Characteristic for the U.S. banking system is strong development of correspondent relations between commercial banks. Small banks often establish correspondent relationships with major banks as direct part of their deposits in them.An important point of the U.S. banking system is the creation of FDIC deposit insurance corporation in 1934. FDIC insure deposits initially envisaged at insurance of all bank deposits up to $ 2,500, but over time the amount has increased steadily. The Law on deregulation of depository institutions and control of money circulation in 1980 the maximum amount of deposits subject to insurance FKZD grew from 40 000 to 100 000 dollars. All banks that are members of the Federal Reserve System are required to insure their deposits, and banks no – members can make it optional.Besides commercial banks in the U.S. banking system operate multiple credit institutes. They include credit and savings institutions, investment trusts, insurance companies, pension funds and others. Compared with the commercial banks, they are experiencing greater specialization. For example, the activity of credit and savings institutions were mainly focused on granting consumer loans as predominate medium and long term loans against real estate collateral, house lending and others. In recent years, there has been narrowing the gap between commercial banks, savings and loan institutions. Investment trusts specialized in long-term investment in industry, transport, construction and others. They raised their resources by issuing stock and bond loans.