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banking timeline
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First bank created
The first American bank, the Bank of North America, was created in Philadelphia when it was still the nation's capital. Atthe time, each state had a separate currency. -
Congress charters first national bank
The U.S. Congress creates the first national bank, the First Bank of the United States, in Philadelphia, to create a standardized national currency and to deal with the debt incurred during the Revolutionary War. Geroge Washington signed the charter, which was removed in 1811. -
Second National Bank receives charter
The U.S. Congress issues a charter for the Second National Bank, to replace the First National Bank which ceased operations 5 years prior. The Secon Bank was in operation until 1936, when it lost its charter. -
Free Banking Act
Prior to 1838 a bank chater could only be ovtained by a specific legislative act, but in 1838, New York adopted the Free Banking Act which enabled anyone to engage oin banking. As a result, free banking spread rapidly to other states. In many western states this degenerated into "wildcat" banking. Bank notes were issued against little or no security, and credit was overextended, resulting in a depression and a wave of bank failures. -
National Banking Act
In 1863 and 1864, Congress passed the National Bank Acts to correct the results of the Free Banking Act by creating the United States National Banking System, a system of banks to be chartered by the federal government. -
National Monetary Commission set up
The National Monetary Commission, set in in 1908, was a reaction to the banking crisis created by overextended credit, inelastic currency and inadequate reserves. The commission investigated banking and currency systems in Europe in order to advise Congress. Their report to Congress was the basis of the 1913 Federal Reserve Act, which created the modern Federal Reserve system. -
First Credit Union
in 1909, the first Credit Union in the US, St. Mary's Cooperative Credit Association, was established in Manchester, New Hampshire. -
Federa Reserve System created
Following the National Monetary Commission's recomendations, tthe Federal Reverse System was founded in 1913 to create a central banking organization. -
Glass-Steagall Act
By 1933, the Glass-Steagall Act of 1932 and the Banking Act of 1933 together formed an extensive reform measure designed to correct the abuses that had led to numerous bank crises in the years following the stock market crash on 1929. The Glass-Steagal Act prohibitied commercial banks from involvement in the securities and insurance businesses. The Baking Act strengthened central supervisions and created the Federal Insurance Corporation (FDIC) to insure bank deposits. -
The Banking Act
The Baking act of 1935 strengthened the power of the Federal Reserve in the field of credit mnagement, tigtened existing restrictions on banks, and enlarged the supervisory powers of the FDIC. It replaced the Federal Reserve Board with a seven-member Board of Governors and disqualified the Secretary of Treasury and the Controlled from membership. -
War Finance Division established
The Treasury Order 39 established the War Finance Division, which was transformed into the Savings Bonds Program. -
International Monetary Fund founded
The International Monetary Fund (IMF) was founded druing the Bretton Woods Conference in July of 1944. -
First credit card issued
in 1958, Bank of America issued the first credit card, called the BankAmericard. The card was issued in Fresno, CA and was only accpeted within the state. -
Bank Merger Act
The Bank Merger Act, passed in 1960 and amended several times after, required federal regulation of all bank mergers and consolidations. -
National Association of Federal Credit Unions founded
The National Association of Federal Credit Unions (FAFCU) was founded in Washington D.C. to protect the Federal Credit Union's interest in the nation's capital. -
First ATM
The first ATM machine is set up in Rockville Center, NY. -
Monetary Control Act
The Monetary Control Act, passed in 1980, allowed banks to compete more freely with other financial institutions. This gave the Federal Reserve more control over non-member banks. It also allowed banks to merge and all banks had to follow the Federal Reserve's regulations. The act allowed credit unions to offer checkable deposits.
