The National Banking Act Of 1863

1462 WordsApr 29, 20176 Pages
BACKGROUND: Banking in the United States is a better known as the declaration of the growth of capitalism and free enterprise. Adam Smith, a well-known economist, referred to capitalist banking as the “invisible hand” guiding the path of allocation through goods and services throughout the economy. Commercial and investment banking quickly became the leading hands in the economy, as financial resources was a common scarcity in environments. Merchant banks that were privately owned performed the capital distribution function. During the civil war, commercial banks were state chartered financial institutions. Many banks were under-capitalized, as they were under no obligation to disclose financial conditions. The National Banking Act of 1863…show more content…
They also offer credit cards and payments card services to both individual consumers and retail wholesalers alike. Commercial Banking: As commercial banks first came about, they were presented as brick mortar, comprised with safe deposit boxes, vaults, tellers and ATMs. Today, we live in a very fast paces world. Technological advances have allowed global economies to bank online at personal and professional leisure. As some commercial banks do not require a physical location, they save a lot of money in ancillary charges, such as rent, utilities and property taxes. At times they may offer higher interest rates on deposits, investments and charge lower fees as well. Commercial banking provides consumers and potential customers with various financial services, such as deposits and loans, in a means of ensuring social stability, economic stability, and sustainable growth of the economy. Commercial banks offer a large range of investment products. While these products are not only for the use of personal accounts, they are also put to great use within organizations. Savings accounts, certificates of deposit, business loans, auto loans and mortgages are all examples of products that are offered in commercial banking. Due to the fact that certificates of deposit, saving and checking accounts are secured by the Federal Deposit Insurance Corporation (FDIC) in the United States, customers and consumers are
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