In this modern era of the world now reaching towards 2020 mark its been 100’s of years since banking has started in the U.S.
Definitely we don’t know how much people used and valued the banking in the 19th century and at the present 21st century everything is decided by banks.
From the country’s economy to individual person’s growth lots of important factors about the bank are mainly dependent on the performance of the banks all over the country.
Don’t take it that bank is the only factor that decides the economy of a country, what we are saying is that the bank is one of the important factors related to the economy.
How banks started evolving ( Banks History)
Most of the banks started to rise during the period of the 1900s and actually, at those times Bank of Pennsylvania in 1790 see it as an opportunity to make some business by helping entrepreneurs starting some new things.
During those times mainly small private banks saw massive growth for insider lending.
The first commercial banking in the U.S started out in 1791 with the opening of and even before itself the Bank of North was opened in the year 1782.
Talking about the history of Bank of Pennsylvania it was actually opened up by the British people when they travelled to America to fund the American Revolutionary which was happened during 1775-1783.
And soon American required a national bank to maintain taxes and foreign debt that’s when the Bank of United States originated in 1972.
So during this modern, we all know what an investment is, so as far as now for us people investment means opening up a savings account and put out hard-earned money over and wait for the growth over a period of time so that money will help us during our old age or hard times.
And investment Banking in America actually started to begin in the year of 1860s by Jay Cooke & Company who were actually the first issuer of Government Bonds all over the U.S over that period
Check out Top 5 Regional Banks in the U.S
During the period of the 1900s, there was a regulator established all over the U.S to regulate banking in the U.S at both Federal and State Levels.
Here is the list of regulatory policies that actually comes under the Banking
- Address Privacy.
- Fraud Prevention.
- Anti-Money laundering.
- Anti-usury lending.
- Promotion of Lending to lower-income populations.
But actually, during those times not all states come under these Regulations because at that time there are still some states which have operated separately and haven’t come under the U.S Banking Schemes. And those state Banks still have operated under those state government policies but that has changed when the government started to merge those states under the U.S Territories.
And when it comes to Federal Reserve System it has been actually created out in the year of 1913 which the Financial Crisis which happened in 1907 was one of the main reasons with the evolution of Federal Reserve System.
Nowadays the Federal Reserve System is the one thing that Stabililizes out all national and local banks in the U.S Region.
When it comes to the security of Banking in the USA, there are lots of advantages for the people in America who does banking over here.
The security over here is taken by sector by sector basis actually, and the famous and most important law over here is Gramm Leach Billey Act.
Suppose even when the Bank that you are in is completely down then there are also lots of things to be considered for bringing back your money over here.