Banking/Addendum

United States Banking Legislation

(abridged from the FDIC's "Important Banking Legislation" [1])

• National Bank Act of 1864 (Chapter 106, 13 STAT. 99).

Established a national banking system and the chartering of national banks.

• Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221).

Established the Federal Reserve System as the central banking system of the U.S.

• To Amend the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224).

Also known as The McFadden Act of 1927. Prohibited interstate banking.

• Banking Act of 1933 (P.L. 73-66, 48 STAT. 162).

Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce.

• Banking Act of 1935 (P.L. 74-305, 49 STAT. 684).

Established the FDIC as a permanent agency of the government.

• Federal Deposit Insurance Act of 1950 (P.L. 81-797, 64 STAT. 873).

Revised and consolidated earlier FDIC legislation into one Act. Embodied the basic authority for the operation of the FDIC.

• Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133).

Required Federal Reserve Board approval for the establishment of a bank holding company. Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.

• International Banking Act of 1978 (P.L. 95-369, 92 STAT. 607).

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.

• Financial Institutions Regulatory and Interest Rate Control Act of 1978 (P.L. 95-630, 92 STAT. 3641).

Also known as FIRIRCA. Created the Federal Financial Institutions Examination Council. Established limits and reporting requirements for bank insider transactions. Created major statutory provisions regarding electronic fund transfers.

• Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221, 94 STAT. 132).

Also known as DIDMCA. Established "NOW Accounts." Began the phase-out of interest rate ceilings on deposits. Established the Depository Institutions Deregulation Committee. Granted new powers to thrift institutions. Raised the deposit insurance ceiling to $100,000.

• Depository Institutions Act of 1982 (P.L. 97-320, 96 STAT. 1469).

Also known as Garn-St Germain. Expanded FDIC powers to assist troubled banks. Established the Net Worth Certificate program. Expanded the powers of thrift institutions.

• Competitive Equality Banking Act of 1987 (P.L. 100-86, 101 STAT. 552).

Also known as CEBA. Established new standards for expedited funds availability. Recapitalized the Federal Savings & Loan Insurance Company (FSLIC). Expanded FDIC authority for open bank assistance transactions, including bridge banks.