The following content is sponsored by the Bank Policy Institute.
The first American bank was chartered while Revolutionary War cannons were still firing. Though vaults and paper banknotes have given way to online accounts and instant payments, banks remain essential to American prosperity and security — just as they were at the nation’s founding.
Banks help Americans build better lives. Bank credit is the currency of upward mobility. Banks provide the loans that families use to buy homes, entrepreneurs use to start businesses and students use to pursue higher education. They underwrite bonds that help communities build roads, schools and bridges. They process trillions of dollars in payments safely each day, ensuring businesses and consumers can participate in the economy with confidence.
Banks’ financial strength reinforces America’s economic leadership. The Federal Reserve consistently describes the banking sector as strong and resilient, with substantial capital and liquidity. Banks safely process $4.3 trillion in payments every day. That foundation supports the deepest and most liquid capital markets in the world, keeping the United States globally competitive and fueling economic growth.
Just as importantly, banks strengthen national security by protecting the financial system from money laundering, drug and human trafficking, sanctions evasion, terrorism financing and other illicit activity. The anti-money laundering safeguards banks are required to maintain help prevent criminals and adversaries from exploiting the U.S. financial system. Banks also invest heavily in cybersecurity, protecting a critical piece of America’s infrastructure from hackers and foreign threats.
Banks combine financial strength, risk-management expertise and a commitment to serving customers through good times and bad. Their diversified business models allow them to support households, businesses and communities across the economy, while their lending expertise enables them to finance small businesses and startups that drive innovation and growth.
The next 250 years of banking may look very different from today, just as Alexander Hamilton could scarcely imagine a world of tap-to-pay transactions and instant transfers. But one thing will not change: American banks will continue to help finance the American dream.
