What is a dual banking system?
The dual banking system is a type of banking structure that allows you to rent banks at state level and national level. The system also allows supervision of these banks at any level is associated with the original charter. These different levels of supervision can change how banks regulate the loan, set legal credit limits and generally provide services to consumers.
One of the first examples of the dual banking system developed in the United States in the mid -19th century. The Federal Banking Acts have provided states to the establishment and regulation of banks within its borders through their own rules and regulations for management or supervision of the activities of these banks. At the same time, the federal government retained the right to establish national banks and regulate these banks in accordance with the regulations developed at national level. Today's practice continues, with state charts ERED responsible for observing regulations held together with federal authorized banks, but still perform geographyFor a width in any area of the banking process, which is not specifically considered to be binding for state rented banks.
State banks that operate within the dual banking system may or may not use the same standards to extend the loan, either by issuing credit cards or loans to consumers. The method of supervision may also differ somewhat from one state to another. One of the more common organizational structures for monitoring and supervision of state banks is the appointment of a state supervisor, and this supervisor is often associated with the Ministry of Finance of the State. The supervisor is often supported by a team of managers who perform audits and in other ways ensure that state banks work within the CURRV regulations in this particular condition.
A similar approach is used to manage the operation of federally authorized banks, which are part of the double banking system. UnitedCH States Regulate National Rent Banks. These national rented banks are considered to be responsible for compliance with federal banking regulations and are subject to fines or other steps if the office finds that these banks contradict any federal regulations.
One of the advantages of the dual banking system is a wide range of banking options provided to consumers. Both companies and individual consumers can assess the benefits of different federal and state authorized banks and determine which banks or banks offer the most attractive range of services and fees. This ability to choose from so many different banking options is generally considered to be a healthy economy because it supports competition inside the stalls founded by federal and state laws.