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

There are 18 other national bank governors, but none stand out as an obvious alternative. Tom Fairless, WSJ, "Jockeying Begins to Take European Central Bank’s Reins From Draghi," 7 July 2018 Hamilton, considered by many to be a chief architect of the United States’ monetary policy, established the first national bank and appears on the $10 bill. Erin B. Logan, Washington Post, "Alexander Hamilton, immigrant and statesman, dies at 47 — or 49," 12 July 2018 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

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.

See More

First Known Use of national bank

1736, in the meaning defined at sense 1

Keep scrolling for more

Learn More about national bank

Share national bank

Statistics for national bank

Last Updated

6 Nov 2018

Look-up Popularity

Time Traveler for national bank

The first known use of national bank was in 1736

See more words from the same year

Keep scrolling for more

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

See words that rhyme with national bank

Britannica.com: Encyclopedia article about national bank

Comments on national bank

What made you want to look up national bank? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

a trusted follower

Get Word of the Day daily email!

Test Your Vocabulary

Difficult Vocab Quiz

  • the-education-of-achilles-eugne-delacroix
  • Which is a synonym of discomfit?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
Citation

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!