Facebook Twitter Pinterest Instagram Youtube DnB US banking system Open Menu Three-tier Banking System The first level is occupied by the Federal Reserve System (FRS), which includes the Board of Governors, 12 regional federal banks, member banks, the Federal Committee on Open Market Operations. The second level is represented by commercial banks, savings and loan associations and mutual savings banks, non-bank credit institutions, and financial companies. The third level is formed by credit unions and mutual credit societies. The US Federal Reserve is a decentralized structure with a diversified system of supervisors, which bear consolidated responsibility for the conduct of monetary policy, the stability of the development of financial markets and the stability of the country’s banking system. US commercial banks carry out a variety of operations: from traditional lending, the share of which in banks’ assets exceeds 50%, to various investment operations. The main purpose of all savings and loan associations and mutual savings banks is to provide mortgage loans for housing construction. US credit unions and mutual credit societies are cooperative lending organizations that provide low-interest consumer loans and mortgages. These are the only agencies in the country that are tax-free and licensed by the state. Financial Consulting Phone: (601) 885-4080 Address: 47794 Rebekah Crest West Tony, CO 68096 Subscribe Subscribe About In recent years, in the United States, as in other developed countries, there has been an increase in government intervention in the banking sector. True, the country’s central issuing banks (federal reserve banks) are not (unlike the UK) the property of the state. However, they are run by the state, they are closely connected with the Ministry of Finance and invest their funds mainly in government securities. Latest Posts Small Business Credit Card Benefits 10/21/2021 Can I Buy Bitcoin With a Credit Card? 10/21/2021 Does the bank covered by insurance? 10/08/2021 Can you use bitcoins for online shopping? 10/08/2021 Cooperation Between Government and Banks 09/07/2021