Banking in the United States

thumb|300x300px|[[First Bank of the United States, the country's first central bank under the United States Constitution]]

In the United States, banking had begun by the 1780s, along with the country's founding. It has developed into a highly influential and complex system of banking and financial services. Anchored by New York City and Wall Street, it is centered on various financial services, such as private banking, asset management, and deposit security.

The beginnings of the banking industry can be traced to 1780 when the Bank of Pennsylvania was founded to fund the American Revolutionary War. After merchants in the Thirteen Colonies needed a currency as a medium of exchange, the Bank of North America was opened to facilitate more advanced financial transactions.

, the largest banks in the United States were JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Goldman Sachs. , there were 4,587 FDIC insured commercial banks and savings institutions in the U.S.

History

Merchants traveled from Britain to the United States and established the Bank of Pennsylvania in 1780 to fund the American Revolutionary War (1775–1783). During this time, the Thirteen Colonies had not established a currency, and used informal trade to finance their daily activities.

In 1913 the Federal Reserve System was established and began executing monetary policy.

]]

While most countries have only one bank regulator, in the U.S., banking is regulated at both the federal and state levels in an arrangement known as a dual banking system. Depending on its type of charter and organizational structure, a banking organization may be subject to numerous federal and state banking regulations. Unlike Switzerland and the United Kingdom (where regulatory authority over the banking, securities and insurance industries is combined into one single financial service agency), the U.S. maintains separate securities, commodities, and insurance regulatory agencies—separate from the bank regulatory agencies—at the federal and state levels. U.S. banking regulations address privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and the promotion of lending to lower-income populations. Some individual cities also enact their own financial regulation laws (for example, defining what constitutes usurious lending). Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved. Events such as the Great Depression were major factors leading to changes in the system. Its duties today, according to official Federal Reserve documentation, are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, up to $250,000 per depositor per bank. , the FDIC insured deposits at 6,800 institutions. The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receivership (failed banks). Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of a bank failure.

Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency (OCC) is a U.S. federal agency established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. The current comptroller of the currency is Rodney E. Hood, who took office on February 10, 2025.

Office of Thrift Supervision

The Office of Thrift Supervision is a U.S. federal agency under the Department of the Treasury. It was created in 1989 as a renamed version of another federal agency (that was faulted for its role in the Savings and loan crisis). (However, see also Cuomo v. Clearing House Association, L. L. C., stating that federal banking regulations do not preempt the ability of states to enforce their own fair-lending laws.) There is currently no federal cap on rates. The federal government only requires that whatever rates, fees, or terms are set by issuers be disclosed to the consumer in accordance with the Truth in Lending Act. A national bank must have "National" or "N.A." in its corporate name.

State bank

A state bank is a bank that is state chartered, meaning that it has been formed under the laws of a specific state government and not the federal government. Although historically state banks could only operate within the state where it was chartered, this distinction slowly eroded. In 2010, this distinction was eliminated with the passage of the Dodd-Frank Act. Now state chartered banks may operate branches in any other state. A state chartered bank cannot have "National" or "Federal" in its name.

State non-member bank

These are the similar to state chartered banks but are not members of the federal reserve. They are still overseen by the FDIC.

Federal savings association

Federal savings associations (FSAs), including federal savings banks (FSBs), are chartered under the Homeowners Refinancing Act of 1933. Although originally focused on residential mortgage lending, they have expanded their business across the range of banking activities. They operate under a distinct regulatory framework from national banks that allows them, for example, to invest directly in real estate development companies. FSAs were originally overseen by the Office of Thrift Supervision, but the Dodd–Frank Act transferred most regulatory jurisdiction to the Office of the Comptroller of the Currency.

State savings association

This is similar to a federal savings association but is registered under state law. They are overseen by the FDIC.

FDIC charter class table

{|class=wikitable

|+FDIC charter classes

!Code!!Description of class of bank

|N||Commercial bank, national (federal) charter and Fed member, supervised by the Office of the Comptroller of the Currency (OCC)

|SM||Commercial or savings bank, state charter and Fed member, supervised by the Federal Reserve (FRB)

|NM||Commercial bank, state charter and Fed nonmember, supervised by the FDIC or OCC

|SB||Savings banks, state charter, supervised by the FDIC

|SA||As of July 21, 2011, FDIC supervised state chartered thrifts and OCC supervised federally chartered thrifts. Before that date, state or federally chartered savings associations supervised by the Office of Thrift Supervision (OTS).

|OI||Insured U.S. branch of a foreign chartered institution (IBA)

Bank mergers and closures

Bank mergers can happen for many reasons in normal business: for example, to create a single larger bank in which operations of both banks can be streamlined; to acquire another bank's brands; or due to regulators closing the institution due to unsafe and unsound business practices or inadequate capitalization and liquidity. Banks may not go bankrupt in the United States. As of October 2008, depositor accounts are insured by the FDIC up to $250,000 per individual per bank. Banks that are in danger of failing are either taken over by the FDIC, or administered temporarily, then sold or merged with other banks. The FDIC maintains a list of banks showing institutions seized by regulators and the assuming institutions.

Banking privacy

In the United States, banking privacy and information security is not protected through a singular law nor is it an unalienable right.

List of banks

According to the FDIC, there were 6,799 FDIC-insured commercial banks in the United States as of February 11, 2014.