Mcfadden Banking Act of 25 February 1927 permitted national banks to operate home-city branch offices in cities where state banks had similar privileges. Its provisions barring state bank members of the Federal Reserve System from establishing such branches, and stipulating that no nonmember banks might join the Federal Reserve System without relinquishing their out-of-town branches, tended to delimit the growth of out-of-town branches. The act also changed the restrictions on real estate loans of national banks and provided indeterminate charters for national and Federal Reserve banks.
Bibliography
Degen, Robert A. The American Monetary System. Lexington, Mass.: Lexington Books, 1987.
