American Banking System

About American banking


The banking sector has seen a very drastic change from the past till the present scenario. Today banks� offers several other things apart from just depositing and taking out money, meaning to say is that is it has increased its services. But the central function of the bank will always remain the same as it was. It puts the deposits of the people in lending loans to other people for different purposes like buying cars, homes, etc. the banks are known as the backbone of the nation. It has been surveyed across the world that American banks are ranking tenth in number among the million banks of the world for different purpose.

History of American banks:

The first bank lasted from the year 1791-1832. In those days most of the states needed permission from the government to open such kinds of banks. For a shot span of time a supplementary coating was been given to the banks of United States. The Central bank was established in the year 1791. The project was carried out by Alexander Hamilton, who was also a secretary of the treasury. The Congressional Charter terminated in the year 1811. Therefore a second bank of United States was formed in the year 1816 and ran till the year 1832.

During that time the bankers were extra vigilant that to whom they are giving money and for what duration of time. They made it sure that the duration of the money should not be much, so that they may meet the unexpected demands of the people. Usually it was the case with the builders as well as the shopkeepers who took the loan for the establishment of their business. It was becoming the trend that only the rich people could get the loan since the farmers could not easily get the loan to buy lands for themselves. Now in those days the market was too uncertain therefore the risk of loans was also very high.

Why banks were created?

The basic reason behind the creation of banks was to secure money of the people. They used the money of the people to give out loans and give people small amount of interest in their savings. This type of work was carried out for a long duration of time. In today�s era bank does not pay us by using our money but we do dat. We pay the bank for our money. This was a metamorphic change. By doing this we are offered different schemes by the banks. Such schemes are very useful for us as they render different things. In some places banks does not like to be called as the modern banks as they think it�s a cheap word which is been used for them. But some banks do like to be called as the modernized banks. One of the best creations of banks is the credit cards. Now this is one thing which everyone on this planet needs. A commodity which can never let any person into trouble, when it comes to monetary terms. This was one invention by banks that they felt that this would become the basic necessity of the people in the near future. And they were quite true about this.

Conclusion

Thus there were some facts about the banks. That when they were created and for what purpose they were created. But overall we can see that the basic requirement of the people are been fulfilled by the banks. They have rendered several services to the people over the time and till today they are gearing up for the betterment of the people.