Dual Banking System

AAA

DEFINITION of 'Dual Banking System'

The system of banking that exists in the United States in which state banks and national banks are chartered and supervised at different levels. Under the dual banking system, national banks are chartered and regulated under federal law and standards, and supervised by a federal agency. State banks are chartered and regulated under state laws and standards, which includes supervision by a state supervisor.

INVESTOPEDIA EXPLAINS 'Dual Banking System'

The dual banking system allows for the co-existance of two different regulatory structures for state and national banks. This translates into differences in how credit is regulated, the legal lending limits and variations of regulations from state to state.

RELATED TERMS
  1. Expedited Funds Availability Act ...

    The Expedited Funds Availability Act (EFAA) was implemented to ...
  2. Hawala

    An alternative remittance channel that exists outside of traditional ...
  3. Bank Reserve

    Bank reserves are the currency deposits which are not lent out ...
  4. Tax Accounting

    Accounting methods that focus on taxes rather than the appearance ...
  5. Regulation H

    A regulation set forth by the Federal Reserve. Regulation H outlines ...
  6. Bank Lending Survey

    A questionnaire circulated by a country's central banking authority ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. Your First Checking Account
    Insurance

    Your First Checking Account

  3. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  4. Life After Bankruptcy
    Insurance

    Life After Bankruptcy

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center