United States Banking Timeline

By: Kirsten McLeod

1791 - Bank of the United States

The Bank of the US received a charter in 1791 from Congress and was signed by President Washington. This bank collected fees and made payments on behalf of the federal government. State banks opposed this bank because they thought it gave too much power to national government which was a big issue at this time.

1816 - Second Bank of the United States

The Second Bank of the United States was chartered in 1816, it failed because it didn’t regulate state banks or charter any other bank. State banks were issuing their own currency, and the Federal government didn’t print paper currency until the Civil War

1863 - National Banking Act

The National Banking Act of 1863 was put into effect in 1863 and said that banks could have a state or federal charter.

1913 - Federal Reserve Act

The Federal Reserve Act was put into effect in 1913 and it created the first National Bank

1930’s - Great Depression

The Great Depression caused banks to collapse, and the Federal Reserves declared a “bank holiday” where banks closed and only allowed to reopen if they proved that they were financially stable.

1933 - Glass-Steagall Banking Act

The Glass-Steagall Banking Act established the Federal Deposit Insurance Corporation, which ensures that if a bank goes under, you still have your money that you put in it.


Congress takes away some of the restrictions which they had on the banks.


Congress allows S&L banks to make high risk loans and investments. The investments went bad, and the banks began to fail the Federal government had to give investors their money back. The Federal government fell into a debt of $200 billion, and the FDIC took over the S&L.