Table 41. SIGNIFICANT CHANGES IN BANK REGULATION OR SUPERVISION Character of proposed change Bank management and banking practices Continued Interest on loans to be 3 percent, of which 1 percent to be paid to the United States and 2 percent to the county. Earnings in excess of dividends and specified additions to surplus distributed among depositors... Superintendent of loan department appointed by President of United States. Officer of each bank, nominated by directors and appointed by Secretary of Treasury, to be responsible for control and management of the bank. Bank chartering, ownership, and supervision Comptroller of the Currency authorized to refuse new national charters where banking facilities are already sufficient. Nonmembers Federal Reserve System may be required to withdraw from insurance if they fail to furnish annually certificates by State authority of their financial condition.. Private banks permitted to operate under national banking law. National banks to be organized, and county comptrollers elected by vote of people in each county having a population of 5,000 or more; post offices in smaller communities to receive deposits for such banks... Formation of cooperative banks by not less than 200 persons, with minimum capital of $25,000.. The present system of deposit insurance is the joint result of Congressional action in 1933, subsequent Federal legislation, and the administrative experience of the Federal Deposit Insurance Corporation. However, its most essential features a premium or assessment on the basis of deposits, careful examination of insured banks, maintenance of the capital funds of banks in proportion to their liabilities or total assets, assurance of adequate emergency credit to banks in difficulties, avoidance by banks of unduly risky loans and investments and other unsafe or unsound banking practices, and prompt action to protect depositors in banks which become involved in financial difficulties— were contained in earlier legislative proposals and former systems of guaranty of bank obligations used as circulating medium. The roots of the present system of deposit insurance go back more than a century prior to establishment of the Federal Deposit Insurance Corporation in 1933. |