How does a bank become established?

1 answer:

7 0

According to the FederalReserve The proposed bank must first receive approval for a federal or state charter. Before granting a charter, the OCC or state must be able to determine that the applicant bank has a reasonable chance for success and will operate in a safe and sound manner.

Next, the proposed bank must obtain approval for deposit insurance from the FDIC. And in addition approvals are required from the Federal Reserve if, at formation, a company would control the new bank and/or a state-chartered bank would become a member of the Federal Reserve.

All insured banks must comply with the capital adequacy guidelines of their primary federal regulator (Federal Reserve, FDIC, or OCC). The guidelines require a bank to demonstrate that it will have enough capital to support its risk profile, operations, and future growth even in the event of unexpected losses. Newly established banks are generally subject to additional criteria that remain in place until the bank's operations become well-established and profitable.

You might be interested in

Who wrote the albany plan and what was the purpose?

KATRIN_1 [288]

Answer:

Benjamin Franklin suggested it.

Explanation:

The Albany Plan of Union was a plan to create a unified government for the Thirteen Colonies

6 0

2 years ago

Despite the belief that the war would be over quickly, why did a stalemate occur along the Western Front?

inn [45]

There are many reasons for the stalemate develop along the western front, they are:

1. The Schlieffen Plan failed, the German commander made an alteration of the forced and made the right wing smaller than the left wing, this made it slower than planned and gave the opportunity to British and French forces to counter-attack. Also, the Germans didn’t plan that Belgium would resist.

2. The second reason is that the Germans didn’t imagine the Russians would attack them in the east, this is one of the reasons the right wing on number 1 was weakened.

3. Even though the Germans were completely exhausted they marched until Paris and French army was unable to defeat the German army at the Battle of Marne because they were in a large number and British and French army weren’t as prepared as the German’s.

4. After this both armies marched to the Belgian coast and stayed there for the next 4 years, this happened for many reasons such as bad weather - it was winter and there was a lot of mud - and the new advanced mechanizes weapons like machine guns made them stay inside their trenches to avoid more deaths.

6 0

2 years ago

Read 2 more answers

In what year did California separate from Mexico and become part of the United States? Help on any of these questions please &am

marysya [2.9K]

3.) California Gold Rush Jan.24 1848-1855

3 0

2 years ago

One cause of the Great Depression was a decrease in the demand for goods. Around 1928, demand for new housing decreased. This le

stellarik [79]

Answer:

Explanation:

How did the drop in consumer demand affect the US economy?

The pace of economic growth has slowed to 2% due to a significant decrease in consumer expenditure. The US economy expanded at a 2% annualized rate in the third quarter, the weakest rate since the conclusion of the 2020 recession. Consumer expenditure and home investment slowdowns aided in keeping the figure low.

3 0

1 year ago

The Emancipation Proclamation Select one: a. Abolished slavery in the Confederacy. b. Was never ratified by Congress. c. Abolish

Eduardwww [97]

The correct answer is A) Abolished slavery in the Confederacy.

The Emancipation Proclamation abolished slavery in the Confederacy. During the tough times of conflict and confrontation during the American Civil War, United States President Abraham Lincoln issued the Emancipation Proclamation on January 1, 1863. This was a very important moment in the history of the United States in that a US President proclaimed that all the slaves in the Confederate states were free.

The proclamation only was valid in the Confederated states that had seceded from the Union, and of course, it was not taken into consideration until many years after the war had ended.

5 0

2 years ago