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Nonmember Bank
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Nonmember bank
Depository institution that is not a member of the Federal Reserve System. Specifically, a state-chartered commercial bank that has elected not to join the System.

Nonmember Bank
In the United States, a state-chartered bank that has opted not to join the Federal Reserve System. Such banks are required to place a certain number of their accounts at a Federal Reserve Bank so as to meet reserve requirements. However, nonmember banks allowed access to the Federal Reserve's discount window are not required to purchase stock in the Federal Reserve. In general, nonmember banks are less regulated than member banks. For example, they are allowed to keep at least a portion of their reserves in interest-bearing securities. They are subject only to the laws of the states in which they are chartered.


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Dominick's colleague, Yeager, was part of a research team that recently published a study that concluded that banks that are members of the Federal Home Loan Bank have higher risk profiles than non-member banks.
It is also anticipated that non-member banks will ultimately use the facility to prepare and distribute eye tissue.
Worcester, Massachusetts, which is a state non-member bank supervised by the FDIC.
 
 
 
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