Chương 4

The FDIC Improvement Act requires that all new depository institutions have FDIC insurance.

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• f

One argument frequently presented for regulation and control over bank chartering activity is that banks can create more money than any other financial institution.

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• F

State banking commissions, on average, impose tougher standards for chartering new banks than the federal chartering agency, the Comptroller of the Currency.

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• F

One of the benefits of applying for a federal banking charter is that banks chartered there need not join the Federal Reserve System.

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Getting a bank charter from the Comptroller of the Currency means that the bank will simultaneously apply for FDIC insurance so no duplication of effort occurs.

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• F

Most new banks are situated along major routes of travel for commuters going to work or to shopping areas and schools.

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"Public need" is usually established with federal or state chartering authorities by showing that existing banks in the area are adequately profitable and have satisfactory amounts of capital.

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Society pays a price if it restricts the number of bank charters below the number that the private sector normally would generate due to lessened competition.

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Most U.S. banks are chartered in urban areas.

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The total number of full-service branch offices has declined in the United States in recent years.

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