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

In his reports on public credit, a national bank and manufacturing, Hamilton sketched out a farsighted vision for securing the nation’s economic future, with an active role for the federal government. Jay Cost, WSJ, "The Founding Era’s Populist Moment," 8 June 2018 South Korea’s national bank estimated that North Korea’s economy in 2016 grew 3.9%. Barbara Demick, latimes.com, "Kim Jong Un, the 'perfect dictator,' gets ready for the spotlight in Singapore," 10 June 2018 The expansion is part of a push for the national bank to add brick-and-mortar stores in 15 to 20 markets before 2023. James Hohmann, Washington Post, "The Daily 202: Barbara Bush and Donald Trump responded very differently to the AIDS epidemic," 19 Apr. 2018 While some rules limiting size still exist, in 1994, lawmakers passed legislation that paved the way for national banks that could hold customers’ deposits coast to coast. Rachel Louise Ensign, WSJ, "Biggest Three Banks Gobble Up $2.4 Trillion in New Deposits Since Crisis," 22 Mar. 2018 In a settlement announced Friday, Wells will pay $500 million to the Office of the Comptroller of the Currency, its main national bank regulator, as well as a net $500 million to the Consumer Financial Protection Bureau. Washington Post, "Wells Fargo to pay $1B for mortgage, auto lending abuses," 20 Apr. 2018 Reuters, citing sources with knowledge of the plans, said the regulator is readying sanctions alongside the Office of the Comptroller of the Currency, an independent bureau of the Treasury Department that regulates national banks. Deon Roberts, charlotteobserver, "Regulator seeking to fine Wells Fargo up to $1 billion, report says | Charlotte Observer," 9 Apr. 2018 Last year, about 45% of new checking accounts were opened at the three national banks, even though those lenders had only 24% of U.S. branches, according to research by consulting firm Novantas. Rachel Louise Ensign, WSJ, "Biggest Three Banks Gobble Up $2.4 Trillion in New Deposits Since Crisis," 22 Mar. 2018 Town Bank is joining a growing list of Wisconsin and national banks in raising the minimum hourly wage for employees to $15. Paul Gores, Milwaukee Journal Sentinel, "Citing tax reform, Town Bank joins other banks in raising minimum hourly pay to $15," 24 Jan. 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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11 Sep 2018

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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

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