Nonmember bank

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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The average FHLB member's housing-related assets make up 19 percent of total assets, while the average nonmember bank holds roughly 14 percent of its assets in housing-related loans.
It should be noted that nonmember bank reserve requirements were determined by the respective states, and usually took the form of interbank deposits or government securities.
As a result, Senator Hardwick of Georgia introduced an amendment that would have added to Section 16 the proviso that nothing in the Act shall be construed as prohibiting a member or nonmember bank from "making reasonable charges, but in no case to exceed 10 cents per $100 .
The original statement strongly encouraged each state nonmember bank to adopt an external auditing program that included an annual financial statement audit by an outside auditor.
1st Centennial Bank (the "Bank") is a state-chartered nonmember bank that was wholly-owned by 1st Centennial.
Huberfeld did not seek the prior approval of the FDIC under section 19 of the Federal Deposit Insurance Act before an investment was made in what became The NorCrown Trust, an unregistered bank holding company that owns more than 99 percent of the voting shares of NorCrown Bank, Livingston, New Jersey, an insured state nonmember bank.
A nonmember bank may not engage in underwriting in the bank itself because Glass-Steagall's section 21 prohibits such activities for member and nonmember banks.
The application for the conversion of Pacific Western to a state-chartered nonmember bank is subject to state and federal regulatory approval.
The Federal Reserve Board on August 24, 2004, announced the issuance of a consent notice of prohibition against Charles Kushner, an institution-affiliated party of The NorCrown Trust, an unregistered bank holding company that owns or controls the shares of the NorCrown Bank, Livingston, New Jersey, a state nonmember bank.
Costs of Reserves and the Relative Size of Member and Nonmember Bank Demand Deposits," Journal of Monetary Economics (November 1978), pp.
Nonmember bank data continued to be collected on call reports, typically two per year until 1960, when thereafter four per year were required.
Immediately after North Fork' s acquisition of Commercial Bank, North Fork's lead subsidiary bank, North Fork Bank, Melville, New York, a state-chartered nonmember bank, would acquire substantially all Commercial Bank's assets and assume substantially all Commercial Bank's liabilities.