National bank

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National bank

A commercial bank approved by the U.S. Comptroller of the Currency, which is required to be a member of and purchase stocks in the Federal Reserve System.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

National Bank

In the United States, a bank that has received its charter from the Office of the Comptroller of the Currency (OCC). National banks are regulated by the OCC and are required to be member banks of the Federal Reserve System. Deposits in national banks are insured by the FDIC.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

National bank.

All banks in the United States are chartered by either a state government or the federal government. Federally chartered banks, called national banks, are overseen by the Comptroller of the Currency of the US Department of the Treasury.

All national banks are members of the Federal Reserve System and deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

The dual banking system of federal- and state-chartered banks can be traced to the National Banking Act of 1863. The act created the new federal bank system in an attempt to impose order on what had been a chaotic situation. State banks have survived, however, and the two banking systems coexist.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Despite Hamilton's assurances of restraint and promises of unimaginable prosperity, the bill that sought to charter the national bank met with powerful and persuasive opposition.
Madison looked to the blackletter of the Constitution itself, "Reviewing the Constitution with an eye to these positions [the advantages of a national bank] it was not possible to discover in it the power to incorporate a bank." Further, to presume that the "general welfare" clause of the Constitution authorized Congress to create a national bank "would give to Congress an unlimited power; would render nugatory the enumeration of particular powers; would supersede all the powers reserved to the state governments." He summed up the argument succinctly, "If the power was not given, Congress could not exercise it."
The first rule also establishes an antipredatory lending standard that provides that national banks may not make consumer loans based on the foreclosure or liquidation value of a borrower's collateral, without regard to the borrower's ability to repay.
The new rules are OCC's response to numerous questions it has received about the extent to which state laws apply to national banks and the authority of state or other agencies to examine or take actions against national banks.
10 would scale back the Supreme Court's decision in the Barnett case concerning the ability of states to regulate the sale by national banks of insurance as agent.
In other words, the decision provides New Hampshire and other states with the authority to enforce their consumer protection laws against national banks.
But, the National Bank does not carry guarantees on these investments.

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