Capital Deployment Opportunity · Lending, deposits and bonds
Commercial Banks and Trust Companies
Definition
For capital deployment, banks lend and invest their depositors' funds, and trust companies invest assets they hold for others. Regulators take a bank's Community Reinvestment Act record into account when it applies for a new charter, deposit insurance, a branch, a relocation, a merger or an acquisition.[3]
Federal law
- National Currency Act of 1864 (later titled the National Bank Act), Act of June 3, 1864, ch. 106, 13 Stat. 99. Governs national banks and the national currency system (Act of June 3, 1864, later titled the National Bank Act; it replaced the National Currency Act of 1863). Official text: govinfo.gov, U.S. Government Publishing Office.
- Federal Deposit Insurance Act, Act of Sept. 21, 1950, ch. 967, 64 Stat. 873. Federal Deposit Insurance Act; established the FDIC to insure deposits and defines "State bank" to include trust companies that receive deposits. Official text: govinfo.gov, U.S. Government Publishing Office.
- Community Reinvestment Act of 1977 (Housing and Community Development Act of 1977, title VIII), Pub. L. 95-128, title VIII, §§ 801–806, 91 Stat. 1111, 1147–1148. Community Reinvestment Act of 1977; requires regulators to assess and weigh a bank's record of meeting community credit needs (12 U.S.C. §§ 2901–2905). Official text: govinfo.gov, U.S. Government Publishing Office.