Dictionary of Banking Terms: nonbank bank
nonbank bank
type of limited service bank popular in the 1980s. Enactment of the Riegle-Neal Interstate Branching Act of 1994, authorizing nationwide branching and bank acquisitions, eliminated any reason for chartering nonbank banks to gain access to out-of-state markets.
Dictionary of Business Terms: nonbank bank
nonbank bank
an institution that provides most of the services of a bank but is not a member of the Federal Reserve System and does not have a charter from a state banking agency. A nonbank bank may offer credit cards, consumer and commercial loans, savings accounts, and accounts with services similar to bank checking accounts. By avoiding government regulation, such businesses may be able to be more innovative and profitable than traditional government-regulated banks.
