In addition

In addition, the Federal Reserve banks is a function that do not comply with the commercial banks and savings institutions: Number of cash. Congress authorized to circulate notes of the Federal Reserve Bank, which form the supply of paper money in the economy. The main role of the U.S. financial system are about 13 800 of its commercial banks. Approximately two thirds of them - banks state, ie private banks operating in accordance with the charter of the state. The last third gets the charter from the federal government, that is a national bank. Prior to the adoption of DIDMCA difference was significant, as the law ordered national banks to enter the Federal Reserve System, while the state banks themselves decided: to join her or not. Savings institutions are independent and separate from the Reserve Bank Board, Federal managers and control organs. But credit has expanded the powers DIDMCA savings institutions (in terms of granting loans to enterprises and consumers) and placed under the control of the association ssudozberigayuchi Reserve System. Topic: Banking System