Book Description

Excerpt from Annual Report of the Commissioner of Banks for the Year Ending December 30, 1933, Vol. 4: Relating to Credit Unions On June 16, 1933, the Congress passed the Banking Act of 1933. In addition to amending in many respects the Federal Reserve Act, this Act created a Federal Deposit Insurance Corporation to provide on January 1, 1934, a temporary deposit insurance fund and by July 1, 1934, a permanent deposit insurance fund. All member banks in the Federal Reserve System automatically participate in the temporary plan and all non-member banks may participate if found eligible upon examination. The privilege of participation was also extended to mutual savings banks, but no Massachusetts savings bank has applied for admission because of the excessive expense and because the provisions of the plan do not appear adapt able to savings banks. The question of statutory authority is also involved. All trust companies, except four non-member trust companies whose deposits were of such nature as to derive little benefit from insurance, have been admitted to the temporary insurance fund either by joining the Federal Reserve System or by qualifying through examination by Federal authorities. Under the provisions Of the Banking Act deposits in banks admitted to partici patiou in the Temporary Insurance Fund are insured to the amount of Each participating bank is required, upon admission, to subscribe to the temporary fund a sum equal to one quarter of one per cent of its insurable deposits, and is subject to further assessment, during the temporary period, up to a maximum Of one per cent of the amount of its insurable deposits. Any balance remaining in the Temporary Insurance Fund on July 1, 1934, will be refunded pro rata to participating banks. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.