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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5% of institutions; 50% of nonfarm loans; 79% of C&I loans Small institutions, small asset footprint Table 5-11: National/State Member/Insured Nonmember Banks, Assets, Nonfarm Loans and C&I Loans, by Bank Asset Size (<$100M, $100M to $249.
The Federal Deposit Insurance Corporation (FDIC) today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA).
In 1929, nearly all interbank deposits held by Federal Reserve member banks belonged to "shadowy" nonmember banks which were outside the regulatory reach of federal regulators.
The orders cover national banks, state member banks, state nonmember banks, bank holding companies, and bank subsidiaries.
National banks, which are supervised by the 0CC; state member banks, supervised by the Board of Governors of the Federal Reserve System; state nonmember banks, supervised by the FDIC; and savings associations, supervised by the OTS, would have to adhere to the regulations.
This paper explains how the shift of deposits from nonmember banks and country banks to larger member banks increased the average or "effective" reserve requirement in the 1929-1936 period.
Each Reserve Bank would accept checks from its member banks at par if they were drawn on other member banks or on nonmember banks that paid at par, although a small per-item service charge was allowed.
The role of vault cash for nonmember banks and thrifts is more complex than that for Federal Reserve member banks, as described in this article.
Amendment to Statement of Policy Regarding Independent External Auditing Programs of State Nonmember Banks is intended to eliminate inconsistencies in the FDIC policy statements issued since 1988, when the original statement was issued.
Mortgage servicing rights limitation--The FDIC rule limits the amount of PMSR that state nonmember banks can recognize for regulatory capital to 50 percent of core capital.
The Board also proposed to adopt an exception under section 106 for the financial subsidiaries of state nonmember banks.
One provision allowed nonmember banks to become clearing members of the Reserve Banks.