national bank

noun

Definition of national bank

2 : a bank operating under federal charter and supervision

Examples of national bank in a Sentence

Recent Examples on the Web

The Federal Reserve is also closed on Labor Day, so most national banks will be closed. Rachel E. Greenspan, Time, "Here's Everything That's Open and Closed on Labor Day 2019," 31 Aug. 2019 King was a Jeffersonian Democrat, or Democratic-Republican, who held a lifelong disdain for the national bank, was opposed to tariffs, and supported the War of 1812. Thomas Balcerski, Smithsonian, "The 175-Year History of Speculating About President James Buchanan’s Bachelorhood," 28 Aug. 2019 The Office of the Comptroller of the Currency, which regulates national banks and federal savings associations, posted the enforcement action to its website on June 21. Robert Channick, chicagotribune.com, "Banker Stephen Calk barred from industry while feds pursue federal bribery charges for issuing Manafort loans," 1 July 2019 Sagent typically worked with national banks and auto companies, while Defi worked primarily with finance companies, regional banks and credit unions. Dallas News, "Westlake auto lending tech firm to remain in North Texas after merger with Pennsylvania company," 6 Aug. 2019 This spectacular home, adorned with turrets, dormers and arches, had been designed by architect W.H. Tyndall and decorated by Pottier Slyinus & Co., for R.S. Willis, president of the national bank in Galveston and owner of Darington Plantation. Alice Adams, Houston Chronicle, "Moody Mansion a standing witness of Galveston’s history," 14 June 2019 The French and German national banks didn’t immediately respond to requests for comment. Laurence Norman, WSJ, "European Governments Explore Financial Channels for Iran," 16 July 2018 At large national banks, CDs frequently pay only modest yields. Eric Uhlfelder, WSJ, "How to Find Decent Yields on Savings," 7 Oct. 2018 Microsoft is working with Australia’s national bank on cardless ATM machines that would let people withdraw cash using a facial scan and personal identification number. Dee-ann Durbin, The Seattle Times, "Hertz, Clear partner to speed rentals with biometric scans," 12 Dec. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'national bank.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of national bank

1736, in the meaning defined at sense 1

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12 Sep 2019

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The first known use of national bank was in 1736

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More Definitions for national bank

national bank

noun

Financial Definition of national bank

What It Is

A national bank is a bank that is a member of the Federal Reserve system and the Federal Deposit Insurance Corp.

In global terms, a national bank is a country's central bank. In this context, the Federal Reserve is the United States' national bank.

How It Works

For example, let's say Company XYZ is a bank. To become a national bank, it must receive a charter from the Comptroller of the Currency and pay premiums to the FDIC. In return, the bank can become a member of the Federal Reserve and thus borrow from the Federal Reserve when necessary (see our definition of Federal Reserve for more on how this works). The bank also receives FDIC coverage for its depositors, meaning that most depositors' money will be protected even if Company XYZ goes bankrupt.

The Federal Reserve is the bank for the U.S. Treasury. In this capacity, local Federal Reserve banks hold receipts and make payments on behalf of the Treasury. The Federal Reserve banks maintain Treasury fund accounts, clear checks drawn against the Treasury, and manage the physical issuance, servicing and redemption of Treasury securities and savings bonds.

Why It Matters

National banks have existed since the 1860s, when the U.S. implemented the National Bank Acts of 1863 and 1864. The U.S. didn't have a consistent national currency then, and the laws allowed chartered banks to issue their own bank notes that were backed by U.S. government bonds. (National bank notes don't exist anymore.)

National banks hold the vast majority of the country's deposits. Until 2004, they were almost never allowed to underwrite insurance or engage in merchant banking or real estate development.

Source: Investing Answers

national bank

Legal Definition of national bank

see bank

More from Merriam-Webster on national bank

Rhyming Dictionary: Words that rhyme with national bank

Britannica.com: Encyclopedia article about national bank

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