What is an Org Chart?
Banking Organization Chart
What is Banking?
Commercial banks manage the checking and savings accounts of their corporate and individual customers, and lend out the deposits. Investment banks assist corporations in raising capital by issuing securities. Savings banks manage savings primarily for individuals, and use the deposits for loans. In early 2011 some 7,574 insured commercial and savings banks existed in the United States, employing 2.09 million full-time equivalent employees. Click on the image below to see an example of how a bank is typically structured.
Commercial banks provide payment services, such as checking and credit card accounts, for customers. They earn money by lending out customer deposits in various ways, including installment loans such as mortgages and lines of credit. Investment banks enable business expansion by providing the liquidity companies need to start up or grow.
Banking activities existed as early as 325 B.C. Modern banking originated in medieval Italy. Several families dominated banking in 14th Century Florence and established branches throughout Europe. The famous Medici bank was established in 1397. Early banking in the United States was characterized by multiple currencies, speculation, and political influence. The National Banking Acts of 1863 and 1864 created order out of the chaos, and established a system of federally chartered banks. These laws encouraged the creation of a national currency backed by U.S. Treasury securities.
In the 1980s, due to changing regulations and technology, the banking industry underwent large consolidation. At year-end 1984, there were 15,084 banking and thrift organizations. By year-end 2003, that number had fallen to 7,842.
In response to the financial crisis of 2008-2010, a number of banks were strained, and the FRB pumped huge amounts of money into the system. The crisis was considered the worst since the Great Depression. Congress passed the Dodd-Frank Act: the most sweeping reform of the banking system since the Depression. Dodd-Frank affects nearly every aspect of the financial system. It adds new agencies and changes existing ones, provides consumer protections, and more tightly regulates such entities as hedge funds. As of mid-2012 agencies were still writing specific regulations.