National Bank

Dictionary Says

Definition of 'National Bank'

In the United States, a commercial bank chartered by the comptroller of the currency of the U.S. Treasury. A national bank functions as a member bank of the Federal Reserve in the capacity of investing member of its district Federal Reserve Bank. These banks may facilitate the auction process of U.S. Treasury bonds and must be members of the Federal Deposit Insurance Corporation (FDIC). 

Internationally, "national bank" is synonymous with "central bank," or a bank controlled by the national government of a country. Central banks set monetary policies within national economies.
Investopedia Says

Investopedia explains 'National Bank'

National banks in both structures have an important role in that they help structure a country's financial system. Having an efficient banking system, whether through a central bank or the Federal Reserve, is important to the financial stability of a country's economy.

National banks also facilitate daily transactions with their local Federal Reserve Bank, such as Fed bank wires. They must generate call reports to the Fed each quarter and also make the reports public.

The first national bank in the U.S. was founded under the plans of George Washington.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Federal Reserve System - FRS

    The central bank ...
  2. Federal Reserve Bank

    The banks that ...
  3. Central Bank

    The entity ...
  4. Federal Deposit Insurance ...

    The U.S. ...
  5. Bank Wire

    An electronic ...
  6. Commercial Bank

    A financial ...
  7. Agreement Corporation

    A type of bank ...
  8. Swiss National Bank

    The Swiss ...
  9. Article XII Company

    An investment ...
  10. National Bank Surveillance System

    A computerized ...

Articles Of Interest

  1. The Federal Reserve

    Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
  2. How The U.S. Government Formulates Monetary Policy

    Learn about the tools the Fed uses to influence interest rates and general economic conditions.
  3. Compare Local Interest Rates

    Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
  4. Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  5. Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  6. Inside National Payment Systems

    The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  7. Where can I buy government bonds?

  8. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  9. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  10. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center