Nonbank Bank

Nonbank Bank

An institution that provides most banking services without belonging to the Federal Reserve System or receiving a state charter. Nonbank banks do not offer checking accounts per se, but offer credit cards, loans and savings accounts. They developed to circumvent regulations preventing banks from operating in multiple states. They became unnecessary after the passage of the Riegle-Neal Act, which deregulated banks.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Mentioned in
Copyright © 2003-2025 Farlex, Inc Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.