ECO 205 Lecture Notes - Lecture 11: Shadow Banking System, National Bank Act, U.S. Bancorp

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27 May 2020

Document Summary

This chapter examines the historical trends in the banking industry that help explain the unique structure of the u. s. system. Recognize the key features of the banking system and the historical context of the implementation of these features. Explain how financial innovation led to the growth of the shadow banking system. Identify the key structural changes in the commercial banking industry. Summarize the factors that led to consolidation in the commercial banking industry. Assess the reasons for separating banking from other financial services through legislation. Summarize the distinctions between thrift institutions and commercial banks. Identify the reasons for u. s. banks to operate in foreign countries and for foreign banks to operate in the united states. National bank act of 1863 creates a new banking system of federally chartered banks. Figure 1 time line of the early history of commercial banking in the united states. Federal reserve and state banking authorities: state banks that are members of the.