Dual banking

Describes United States custom in which a bank is chartered by the state or federal government.

Dual Banking

In the United States, the regulatory situation in which a bank may receive a charter from either the Federal Reserve or the state in which it operates. This is a function of federalism in the United States, and is different from banking regulation in many other countries. See also: Member bank, Non-member bank.

Mentioned in ?

National bank

References in periodicals archive ?

In the context of this growth at local and global levels; the banking sector is going through a paradigm shift; resulting in an intense competitive environment in a dual banking industry.

Islamic banking is bound to prosper in Pakistan in both letter and spirit

(1) full-fledged Islamic banking system operating on a parallel basis with a full-fledged conventional system (dual banking system);

The impact of monetary policy on Islamic bank financing: bank-level evidence from Malaysia

The CPIFR and the subsequent regulations for the observance of standards and codes in Islamic banking were essential "for both fully Islamic banking systems as well as systemically significant Islamic banking systems in dual banking markets," says Bello Lawal Danbatta, secretary-general of Kuala Lumpur-based Islamic Financial Services Board (IFSB), which jointly developed the CPIFR with the IMF.

IMF's Islamic banking regulation framework: Playing by the rules

The directors noted that the CPIFR standard and assessment methodology will be used in fully Islamic banking systems and as a supplement to the Basel Core Principles for Effective Banking Supervision (BCP) in dual banking systems where Islamic banking has a significant market share of 15 per cent or more.

IMF endorses Islamic rules for financial assessment

The CPIFR and their associated methodology will be applied in financial sector assessments undertaken in fully Islamic banking systems and, as a supplement to the Basel Core Principles for Effective Banking Supervision (BCP), in dual banking systems where Islamic banking is systemically significant.

IMF endorses core principles of Islamic Finance Regulation

A total 10 countries around the world benefit from a dual banking system, the assets of which Islamic banks own 20 percent.

CBK Chief Addresses International Conference on Islamic finance

Michael Nonaka, a partner with Covington & Burling in Washington, D.C., said there is "great value" in a sandbox for entrepreneurs, but "in order for a sandbox to work, you have to get the buy in from all the different agencies." Even if that were possible to do, he said that with the dual banking system, the problem would "exacerbate tenfold" if state regulators were added to the mix.

Barriers Remain to Letting US Fintechs Play in the Regulatory 'Sandbox'

Cetin's presentation provided insight on the application of CDMs for analysis of efficiency and other aspects of financial stability in a country and for comparison between Islamic and conventional banks in countries that have dual banking systems.

Conference held on soundness indicators for conventional and Islamic finance

(2004) state that Malaysia has a truly dual banking system with both conventional and Islamic banks operating side by side.

Conceptual Understanding of Islamic Housing Loan (Bai-Bithaman Ajil): An Empirical Review

The Central Bank has called on Tunisian banks, branches of foreign banks, to operate the network of subsidiaries of these banks using the "dual banking" mechanism, allowing the Tunisian community to benefit from preferential treatment when carrying out exchange transactions.

BCT takes urgent measures on foreign exchange market and rationalisation of consumer credit

Though Sudan is one of the only completely Shari'ah-compliant banking systems in the word, a growing number of African countries have dual banking systems with distinct regulatory frameworks for Islamic banking.