What are the U.S. banking laws?

The United States banking system is heavily regulated by numerous banking laws that affect how banks conduct operations, protect customer’s money, and comply with the regulations of the Federal Reserve. These laws are broken down into national banking laws, such as the Bank Holding Company Act, and state banking laws, such as the California Financial Code. At the federal level, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established protections for consumers and created a more stringent system for financial regulations. It also established the Consumer Financial Protection Bureau, which has the power to create and enforce regulations to protect consumers from financial abuses. The Bank Holding Company Act of 1956 regulates the activities of holding companies, which are organizations that control two or more banks. It requires them to only conduct banking activities deemed permissible by the Federal Reserve and to have a majority of their assets tied up in actual banking activities. At the state level, the California Financial Code contains the bulk of the state’s banking regulations. These include the licensing of banks, setting loan limits, and establishing fee caps for banking services. Additionally, the California Financial Literacy Fund was established to provide financial literacy programs and financial coaching services to Californians. Overall, the U.S. banking laws have been established to protect consumers, promote fairness and safety in the banking system, and to better regulate the banking sector as a whole. Through these laws, the Federal Reserve is able to ensure banks are conducting their activities in a safe and responsible manner.

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What are the U.S. banking laws?

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