Banking SystemsMost countries have a central banking system and in the United States the central banking system is the Federal Reserve. The Federal Reserve is governed by a board of governors composed of seven governors, appointed by the president and confirmed by the Senate. The Federal Reserve Act was signed into law in 1913. In the 1700s, before the Federal Reserve Act was signed into law, the Bank of the United States was created by President George Washington to help pay off debt incurred because of the war, by financing the government and issuing bank notes. However, the Bank of the United States closed in the early 1800s because Congress did not vote to renew its charter. The following year, after the Bank of the United States closed, a second Bank of the United States was established due to the war. of 1812 and the federal debt began to climb again. Congress created the Second Bank to have a uniform currency and to act as a clearinghouse for other banks. The second bank had to close in 1836 when Congress, once again, failed to vote to renew the charter. The National Bank was created after the Civil War to meet the need to finance the war. Under the National Bank, banks could choose between a national charter and a national charter. After the Civil War ended, the National Bank struggled to survive due to banking panics, and in 1907, bankers and Congress laid the foundation for a centralized banking system. In 1908 the Aldrich-Vreeland Act was introduced to provide emergency currency, it also established the National Monetary Bank. Commission. President Woodrow Wilson replaced the Aldrich-Vreeland Act plan in 1912 when it was introduced with the Glass-Willis proposal. The Glass-Willis proposal proposed the creation of twenty or more...... middle of paper ...... to create a deposit insurance plan.ConclusionThere are some similarities with the banking systems of the United States and of China, but there are more differences than similarities. Both banking systems came into existence due to the economic turmoil caused by the war. Both countries have a central banking system, for the United States it is the Federal Reserve and for China it is the People's Bank of China. The structures of banks are different: in the United States, the structure is made up of private banks and public commerce, in China, the structure goes through the People's Bank of China. Both countries have established regulatory agencies to oversee the operations of banking systems, although China also allows the People's Bank of China to oversee some regulations and is the central bank. Finally, bank deposits are insured in the United States and bank deposits are not insured in China..