Wildcat banking refers to the banking industry in parts of the United States from 1837 to 1865, when banks were established in remote and hard-to-reach places.
Savage banks were not completely free from regulation; they were free only from federal regulation. Wild banks were registered under applicable state laws and regulated at the state level. Thus, banking regulations varied from one state to another during the era of free banking.
The term “wildcat banking” supposedly originated in 1830s Michigan, where bankers were thought to have opened banks in areas so remote that wildcats roamed there. Others say the term originated from an early bank that issued currency with a wild cat on it.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.
A bank run occurs when large groups of depositors withdraw their money from banks at the same time, out of fear that the institution will become insolvent.