corporation chartered by a state to engage in commercial banking, and subject to supervision under banking laws in the chartering state. State banks differ from national banks, which are chartered and supervised by the Comptroller of the Currency. State banks have access to Federal Reserve services, such as check collection, currency and coin delivery, and the fed wire, and can become member institutions in the Federal Reserve System.
Regulations in some states give state chartered banks more authority than national banks to engage in selected nonbank activities, such as insurance underwriting and brokerage, securities underwriting, and real estate investments, which accounts for the diversity of banking under the dual banking system. Supervision of state chartered banks is shared by state banking departments and the Federal Deposit Insurance Corporation, which insures deposits of most regulated financial institutions.
bank organized under a charter granted by a regulatory authority in one of the 50 U.S. states, as distinguished from a National Bank, which is federally chartered. The powers of a statechartered commercial bank are generally consistent with those of national banks since state laws tend to conform to federal initiatives and vice versa.
bank organized under a charter granted by a regulatory authority in one of the 50 U.S. states, as distinguished from a national bank, which is federally chartered. The powers of a state-chartered commercial bank are generally consistent with those of national banks, since state laws tend to conform to federal initiatives and vice versa. State banks deposits are insured by the Federal Deposit Insurance Corporation. State banks have the option of joining the federal reserve system, and even if they reject membership, they may purchase support services from the Fed, including check-processing and coin and currency services.
