Additionally, the actions of banks can have effects which reach far into the structure of an economy: they have the power to create money by making loans and investment through extending credit; they provide loans that support consumption and investment spending; and they have long had a functional involvement with government through collecting taxes, dispensing government payments and other operations which closely tie them into the economic climate and policy-making. Cushman, p. 133).

In the United States, banks are regulated through a dual banking s

Each of the 50 states has a banking supervisor, usually called the bank commissioner or the banking superintendent. They have the power to issue charters for new banks, supervise and regularly examine all state-chartered banks, and have the right to approve all applications of banks operating within state borders to form a holding company, acquire affiliates and subsidiaries, or establish branch offices.

The Federal Deposit Insurance Corporation (FDIC) protects depositors of failed banks, promotes stability and maintains public confidence in the banking system. The FDIC directs two federal deposit insurance programs - the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF). The basic insured amount for a depositor is $100,000 at each insured financial institution. The BIF has created an insurance fund through income from investments in U.S. Government securities and from annual assessments paid by all insured commercial banks, certain federal and state savings banks, and industrial banks. The FDIC has the authority to examine insured financial institutions either directly or in cooperation with state or other federal authorities.

The social responsibility laws did much toward ensuring the rights of bank customers and the public, but each law passed had the effect of increasing bank-operating costs. Additional staff must ensure all areas of disclosure and compliance are addressed, full training and implementation throughout any bank's system must make sure that policies integrating regulations must be addressed.

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