What are the U.S. banking laws?

The U.S. banking laws are primarily established and regulated by the Federal Deposit Insurance Corporation (FDIC). The FDIC was created in 1933 as part of the Banking Act of 1933 to protect depositors and to ensure the safety and soundness of the banking system in the U.S. The FDIC oversees the regulation of national banks (which are owned by the U.S. government), state banks, and foreign banks operating in the U.S. The FDIC also sets limits on the interest rates that banks can charge on loans and deposits. The FDIC also ensures that banks provide customers with the protection of the Truth-in-Lending Act, which requires banks to disclose the terms and conditions of any loan to consumers before they enter into a loan agreement. Additionally, the FDIC requires banks to have adequate capital and liquidity reserves to cover potential losses. The Federal Reserve System is another important banking regulator in the U.S. The Federal Reserve System sets reserve requirements for banks and oversees their compliance with the Federal Reserve Act. The Federal Reserve System also has the authority to issue new currency in order to maintain the integrity of the banking system. The Consumer Financial Protection Bureau (CFPB) was created in 2010 to protect consumers from predatory lending practices. The CFPB sets rules and regulations governing consumer financial products and services, including mortgages, credit cards, and student loans. It also enforces consumer protection laws, such as the Truth-in-Lending Act and the Equal Credit Opportunity Act. In addition to these federal laws, each state also has its own banking regulations, such as minimum capital requirements for banks and restrictions on the types of services that banks can offer. In Georgia, for example, the Department of Banking and Finance regulates the banking system and ensures that all banks comply with state laws.

Related FAQs

What is the difference between a secured loan and an unsecured loan?
What is the National Bank Act?
What is the difference between a bank and a mortgage lender?
What are the regulations surrounding banking?
What is the Credit Repair Organizations Act?
What is the Right to Financial Privacy Act?
What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?
What is the federal Consumer Financial Protection Bureau?
What is the U.S. Bankruptcy Code?
What is the federal Bank Holding Company Act?

What are the U.S. banking laws?

Related FAQs

Related Blog Posts