Federal Banking Law may vary from place to place. The federal banking law addresses almost the same problems and issues.
There are several federal banking law regulators regulating the federal banking law.
Banking law can also be regulated at the state level.
Federal banking law can be regulated by certain federal banking law agencies which can be summarized as below:
- Federal deposit insurance corporations
- federal reserve board
- office of the controller of currency
- office of thrift supervision
- federal reserve board consists of 12 districts revolving around 12 federal reserve banks.
The federal banking law can be understood under the following heads:
Bank secrecy act:
Federal banking law of bank secrecy act demands that the financial institutions should assist the governments agents to prevent money misappropriation.
The federal banking law bank secrecy act instructs the financial institutions to keep a track of all the cash transaction which take place of negotiable instruments, money transaction which is more than $10,000 every day.
This federal banking law bank secrecy act also keep an eye for any suspicious money transaction which may include any kind of criminal activity or arouse suspicious. The federal banking law also makes an effort to detect tax evasions.
Federal banking law-fair credit reporting act:
The federal banking law -fair credit reporting act takes care of collecting, disseminating and the usage of customer information.
Together with the fair debt collection practice act, the federal banking law fair credit reporting act forms the base through which the people of the United States of America can exercise their rights.
Federal banking law- lending limits:
Federal banking law- lending limits restricts the amount which a bank may provide to a client. The amount can be a credit amount or a loan amount.
The restriction imposed by the federal banking law -lending limits is considered as a percentage of the bank's total capital or assets.
According to this federal banking law-lending law, a bank is not entitled to provide financial assistance to any individual or a customer of more than 15% of the bank's surplus or capital or assets.
The federal banking law as well as the state banking law at times allow or provide financial assistance of more than 25% of the total capital ,surplus capital to the clients provided the credit limit exceeding the lending limit is fully secured.
- Pass through insurance
- Right to financial privacy
- Sarbanes Oxley Act, 2002:
Sarbanes Oxley Act, 2002 is one of the federal banking law called SOX and is a controversial federal banking law.
SOX federal banking law was implemented with a view to minimize the accounting and corporate scandals.
As a result of the scandals people lost faith in the accounting practices.
The Uniting and Strengthening America is a federal banking law which was signed by George Bush in 2001.
The above federal banking law tries to make banking a fair act in the United States of America.