Skip to main content
Back

History of the US Banking System definitions

Control buttons has been changed to "navigation" mode.
1/15
  • Federal Reserve
    Central institution established in 1913 to manage the US money supply and respond to financial crises, providing stability to the banking system.
  • Bank Panic
    Event where depositors rush to withdraw funds, fearing insolvency, often leading to frozen assets and widespread financial instability.
  • Bank Run
    Situation in which a large number of customers withdraw deposits simultaneously, causing liquidity shortages and potential bank failure.
  • Glass-Steagall Act
    1933 legislation that separated commercial and investment banking, aiming to reduce risk and protect consumer deposits.
  • FDIC Insurance
    Government-backed guarantee that reimburses depositors up to a set limit if their bank fails, promoting confidence in the banking system.
  • Commercial Bank
    Institution offering deposit accounts and loans, typically insured by the government to safeguard customer funds.
  • Investment Bank
    Financial entity specializing in creating and trading assets like stocks and bonds, operating without deposit insurance.
  • Savings and Loan Crisis
    1980s event where deregulation and risky investments led to widespread failures and costly government bailouts.
  • Money Supply
    Total amount of currency and liquid assets available in the economy, managed by central authorities to influence economic conditions.
  • Trust
    Organization managing assets for wealthy clients, often with less regulation and lower reserve requirements than traditional banks.
  • Uniform Currency
    Standardized monetary system introduced post-1864, replacing bank-specific notes to facilitate national economic transactions.
  • Reserve Requirement
    Regulatory mandate determining the minimum funds banks must hold, affecting their ability to lend and withstand withdrawals.
  • Deposit
    Funds placed in a financial institution for safekeeping, which may be insured or subject to risk depending on the bank type.
  • Financial Crisis
    Period of severe economic disruption marked by widespread bank failures, frozen credit markets, and loss of public confidence.
  • Inflation
    Sustained increase in general price levels, often impacting banking stability and prompting shifts in depositor behavior.