History of Banking Timeline by Melissa Magallanes

1791 – First Bank of the United States Established

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The First Bank of the United States was chartered to manage debt and stabilize the national economy.

1816 – Second Bank of the United States Established

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The Second Bank was created to address economic challenges following the War of 1812.

1832 – Veto of the Bank’s Recharter by President Andrew Jackson

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President Jackson opposed the Second Bank, leading to its demise and the “Bank War.”

1836 – End of the Second Bank of the United States

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The charter expired, and the U.S. entered a period known as the “Free Banking Era,” where state-chartered banks dominated.

1863-1864 – National Banking Acts Passed

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These acts created a system of national banks and established the Office of the Comptroller of the Currency to issue bank charters and supervise banks.

1913 – Federal Reserve Act Passed

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The Federal Reserve System (the Fed) was established to provide a central banking structure and help prevent financial panics.

1933 – Glass-Steagall Act Enacted

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This act separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation (FDIC) to protect depositors.

1934 – Gold Reserve Act Passed

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Transferred ownership of all gold to the U.S. Treasury and prohibited private gold ownership, solidifying fiat currency use.

1944 – Bretton Woods Agreement Signed

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Established the U.S. dollar as the world's primary reserve currency, pegged to gold, and created the International Monetary Fund (IMF) and the World Bank.

1971 – End of the Gold Standard

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President Richard Nixon announced the suspension of the dollar’s convertibility into gold, ending the Bretton Woods system and moving the U.S. to a fiat currency.

1980 – Deregulation and Monetary Control Act

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Expanded the Fed’s control over non-member banks and deregulated interest rates on savings accounts.

1999 – Repeal of Glass-Steagall Act (Gramm-Leach-Bliley Act)

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Allowed commercial and investment banks to consolidate, changing the structure of financial institutions.

Interesting Fact

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Temples, often considered the earliest banks, served as repositories for valuable items and grain, and priests would lend these resources to local farmers and merchants.