dual banking system
a system of banking regulation in which both federal and state authorities have significant regulatory powers and supervisory responsibilities over the activities of banks
state banking commissions
boards or commissions appointed by governors or legislators in each of the 50 U.S. states that are responsible for issuing new bank charters and supervising and examining state-chartered banks
Comptroller of the Currency
the federal government agency, a part of the U.S. Treasury Department, that awards charters for new national banks in the U.S. and also supervises and regularly examines all existing national banks
Federal Reserve System
a quasi-public U.S. institution created in 1913 by the Federal Reserve Act that provides financial services, such as check clearing, to depository institutions in the region served by each individual Federal Reserve Bank
Glass-Steagall Act
law passed by the U.S. Congress in 1933 that legally mandated the separation of commercial and investment banking, imposed interest rate ceilings on bank deposits, authorized the creation of the Federal Deposit Insurance Corporation, and granted federally
Federal Deposit Insurance Corporation
the U.S. government agency that guarantees the repayment of the public's deposits in the U.S. banks and thrifts in the event these institutions fail, up to the maximum allowed by law ($250,000), and assesses insurance premiums that must be paid by insured
Federal Deposit Insurance Corporation Improvement Act
a law passed by the U.S. Congress in 1991 to recapitalize the Federal Deposit Insurance Corporation and exercise closer regulation over troubled depository institutions
Riegle-Neal Interstate Banking and Branching Efficiency Act
federal law passed in 1994 that permits bank holding companies to acquire banks nationwide and authorized interstate branching and mergers beginning June 1, 1997
Gramm-Leach-Bliley Act
a U.S. federal law approved in 1999 permitting common ownership of banks, securities firms, insurers through financial holding companies or subsidiaries if well capitalized and well managed and granted regulatory approval
USA Patriot Act
federal law passed in the United States in the fall of 2001 requiring selected financial institutions to verify the identity of customers opening new accounts and to report any suspicious activities (especially those possibly related to terrorism) to a di
Sarbanes-Oxley Accounting Standards Act
federal law passed in the U.S. in 2002 designed to prohibit public companies from publishing false or misleading financial reports and creating an accounting standards board to oversee the practices of the accounting and auditing professions
National Credit Union Administration
a federal regulatory agency set up during the 1930s as a result of passage of the Federal Credit Union Act in the United States to charter and supervise federal credit unions
Office of Thrift Supervision
a federal regulatory agency inside the U.S. Treasury Department that is authorized to charter and supervise thrift institutions, including savings and loan associations and savings banks
Securities and Exchange Commission
a federal oversight board created by the Securities and Exchange Act of 1934 that requires public companies to file financial reports and disclose relevant information about their financial condition to the public and to prevent the issuance of fraudulent
state insurance commissions
regulatory bodies created by state law in each of the 50 U.S. states that regulate life and property/casualty insurance companies selling their policies to the public in an effort to ensure adequate service at reasonable cost
systemic risk
risks related to the volatility of economic and financial conditions affecting the stability of the entire global system
Dodd-Frank Financial Reform Law
law passed by Congress in 2010 to protect the financial system against systemic risk and protect consumers against misleading advertising and sale of financial services
monetary policy
a central bank's primary job, which involves making sure that the financial system functions smoothly and that the supply of money and credit from that system contributes to the nation's economic goals
European Central Bank (ECB)
the European Union's central bank
Bank of Japan
the central bank of Japan, chartered to control inflation and stabilize the Japanese economy
People's Bank of China
the central bank of China, directing that nation's money and credit policies
Board of Governors
the center of authority and decision making within the Federal Reserve System; the board must contain no more than seven persons, each selected by the president of the United States and confirmed by the U.S. Senate for a term not exceeding 14 years
Federal Open Market Committee (FOMC)
composed of the members of the Federal Reserve Board and the presidents of the Federal Reserve banks, the FOMC sets money and credit policies for the Federal Reserve System and oversees the conduct of open market operations, the Federal Reserve's chief po
open market operations (OMO)
purchases and sales of securities--in most cases, direct obligations of the government--that are designed to move reserves and interest rates toward levels desired by a central bank (such as the Federal Reserve System)
Federal Reserve Bank
a quasi-public U.S. institution created in 1913 by the Federal Reserve Act that provides financial services, such as check clearing, to depository institutions in the region served by each individual Federal Reserve Bank
member banks
a commercial bank that has joined the Federal Reserve System and is subject to its rules and regulations; includes all national banks as well as state-chartered banks that elect to join the Federal Reserve System