State Bank

DEFINITION of 'State Bank'

A financial institution that has been chartered by a state to provide commercial banking. A state bank is not the same as a central or reserve bank because those banks are primarily concerned with influencing a government's monetary policy. In the United States, state banks are not regulated by the Office of the Comptroller of the Currency (OCC) which is the federal agency that oversees banks that operate nationally. Some state banks are regulated by the Federal Reserve, and those that are not are regulated by the Federal Deposit Insurance Corporation (FDIC).

BREAKING DOWN 'State Bank'

State banks can still be large financial institutions. They are not permitted to expand nationwide because they do not have a federal charter. State banks may be able to provide more nationwide services, such as ATMs, by partnering with banks with a broader presence around the country. In certain states, state banks have more authority than national banks in providing insurance and investment banking services.

RELATED TERMS
  1. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  2. Dual Banking System

    The system of banking that exists in the United States in which ...
  3. Office Of The Comptroller Of The ...

    A U.S. federal agency that serves to charter, regulate and supervise ...
  4. Bank Insurance

    A guarantee by the Federal Deposit Insurance Corporation (FDIC) ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Primary Regulator

    The state or federal regulatory agency that is the primary supervising ...
Related Articles
  1. Markets

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  2. Markets

    What Does a Central Bank Do?

    A central bank oversees a nation’s monetary system.
  3. Markets

    Regional Banks Give The Fed A National Perspective

    We all know that the Federal Reserve utilizes monetary policy to control the economy, but what do the 12 regional Federal Reserve Banks do?
  4. Markets

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  5. Managing Wealth

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  6. Markets

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  7. Markets

    Explaining the Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It regulates monetary policy and supervises the nation’s banking system.
  8. Markets

    Insurance Companies Vs. Banks: Separate And Not Equal

    Insurance companies and banks are both financial intermediaries. However, they don't always face the same risks and are regulated by different authorities.
  9. Markets

    What's the Federal Funds Rate?

    The federal funds rate is the interest rate banks charge each other for overnight loans to meet their reserve requirements.
  10. Markets

    Why the Fed Says Banking Functions Are Too Complex (JPM, BAC)

    Discover why the Federal Reserve may raise capital requirements for America's largest banks or move to limit complex derivative contracts.
RELATED FAQS
  1. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  2. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  3. What are some of the major regulatory agencies responsible for overseeing financial ...

    Discover the specific responsibilities of some of the major regulatory agencies that oversee financial institutions in the ... Read Answer >>
  4. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  5. What do banks do to control the bank reserve?

    Understand what the Federal Reserve does in order to expand or contract the economy. Learn what depository institutions can ... Read Answer >>
  6. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
Trading Center