National bank

Last updated

In banking, the term national bank carries several meanings:

Contents

State (polity) Organised community living under a system of government; either a sovereign state, constituent state, or federated state

A state is a political organization with a centralized government that maintains a monopoly by use of force within a certain geographical territory.

Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and thrift institutions and the federally licensed branches and agencies of foreign banks in the United States. The Comptroller of the Currency is Joseph Otting.

In the past, the term "national bank" has been used synonymously with "central bank", but it is no longer used in this sense today. Some central banks may have the words "National Bank" in their name; conversely if a bank is named in this way, it is not automatically considered a central bank. For example, National Bank of Canada of Montreal, Canada, is a privately owned commercial bank. On the other hand, National Bank of Ethiopia is the central bank of Ethiopia and National Bank of Cambodia is the central bank of Cambodia.

Central bank public institution that manages a states currency, money supply, and interest rates

A central bank, reserve bank, or monetary authority is the institution that manages the currency, money supply, and interest rates of a state or formal monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency, which serves as the state's legal tender. A central bank also acts as a lender of last resort to the banking sector during times of financial crisis. Most central banks also have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.

The National Bank of Canada is the sixth largest commercial bank in Canada. It is headquartered in Montreal, and has branches in most Canadian provinces and 2.4 million personal clients. National Bank is the largest bank in Quebec, and the second largest financial institution in the province, after Desjardins credit union. National Bank's Institution Number is 006 and its SWIFT code is BNDCCAMMINT.

The National Bank of Ethiopia (NBE) is the central bank of Ethiopia. Its headquarters are in the capital city of Addis Ababa. Dr. Yinager Desse is the current governor of the bank.

By country

Afghanistan

Pashtany Bank is the government-owned bank in based in Kabul that controls Da Afghanistan Bank as well as the Afghan National Bank.

Pashtany Bank is a state owned bank established in 1945 and is registered with Da Afghanistan Bank under the commercial banking license to operate nation-wide. The Bank has been operating as one of the leading commercial bank and dominated commercial banking sector since its establishment. Its contributions in expanding financial inclusion and providing variety of banking sector products and services has been vital. Moreover, Pashtany Bank has been considerably contributing to the real sectors of economy and the community in addition to its own strategic objectives. To facilitate its customers, the bank has presence in capital city and provinces offering wide variety of products and services based on the market needs and its customers’ expectations.

Kabul Metropolis and municipality in Afghanistan

Kabul is the capital and largest city of Afghanistan, located in the eastern section of the country. It is also a municipality, forming part of the greater Kabul Province. According to estimates in 2019, the population of Kabul is 5.266 million, which includes all the major ethnic groups of Afghanistan. Rapid urbanization had made Kabul the world's 75th largest city.

Da Afghanistan Bank central bank

Da Afghanistan Bank is the central bank of Afghanistan. It regulates all banking and money handling operations in Afghanistan. The bank currently has 47 branches throughout the country, with five of these situated in Kabul, where the headquarters is also based. Khalil Sediq is its current governor, since 13 July 2015.

Argentina

Argentina's national bank is the Banco de la Nación Argentina, founded in 1891.

Banco de la Nación Argentina largest national bank in Argentina

Banco de la Nación Argentina is the national bank of Argentina, and the largest in the country's banking sector.

Australia

The Commonwealth Bank of Australia was founded by an Australian Act of Parliament in 1911. Bank Nationalisation was the policy of the Andrew Fisher Labor Government. In a rare move for the time, the bank was to have both savings and general bank business. The bank was also the first bank in Australia to receive a Federal Government guarantee.

The Commonwealth Bank of Australia is an Australian multinational bank with businesses across New Zealand, Asia, the United States and the United Kingdom. It provides a variety of financial services including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. The Commonwealth Bank is the largest Australian listed company on the Australian Securities Exchange as of August 2015 with brands including Bankwest, Colonial First State Investments, ASB Bank, Commonwealth Securities (CommSec) and Commonwealth Insurance (CommInsure). Commonwealth Bank is also the largest bank in the Southern Hemisphere.

Australia Country in Oceania

Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania and numerous smaller islands. It is the largest country in Oceania and the world's sixth-largest country by total area. The neighbouring countries are Papua New Guinea, Indonesia and East Timor to the north; the Solomon Islands and Vanuatu to the north-east; and New Zealand to the south-east. The population of 25 million is highly urbanised and heavily concentrated on the eastern seaboard. Australia's capital is Canberra, and its largest city is Sydney. The country's other major metropolitan areas are Melbourne, Brisbane, Perth and Adelaide.

An act of parliament, also called primary legislation, are statutes passed by a parliament (legislature). Act of the Oireachtas is an equivalent term used in the Republic of Ireland where the legislature is commonly known by its Irish name, Oireachtas. It is also comparable to an Act of Congress in the United States.

In 1958 and 1959, there was a controversy concerning the dual function of the bank as the central bank on the one hand and a general bank on the other. As a result of this, the bank was split, giving the reserve bank function to the Reserve Bank of Australia and the general bank function to the Commonwealth Banking Corporation.

The Commonwealth bank was privatised in the 1990s by the Keating Labor government. As of 2016, it is one of the big four banks, along with the National Australia Bank which has always been privately owned.

Bulgaria

Bulgarian National Bank is the central bank of Bulgaria, founded in 1879 and it is the 13 oldest central bank in the world.

Canada

For Canada's central bank see Bank of Canada. The National Bank of Canada is a privately owned bank unrelated to the central bank.

Chile

The national bank in Chile is BancoEstado. It was created in 1953 by merging several state-owned financial institutions. The bank operates in competition with private banks but in addition to profitability its goals include having a positive social impact. [1]

Colombia

The national bank in Colombia is the Bank of the Republic. Its primary role is to control the flow of money inside and outside the country and to issue the Colombian currency, the peso.

Denmark

Danmarks Nationalbank is the central bank of the Kingdom of Denmark.

India

The National Bank for Agriculture and Rural Development [2] (NABARD) is an Indian government development bank that was established on 18 July 1981 to implement the National Bank for Agriculture and Rural Development Act 1981.

Iran

Iran's national bank is Central Bank of the Islamic Republic of Iran (CBI) (Persian : بانک مرکزی جمهوری اسلامی ايران, Bank Markazi Jomhouri Islami Iran). It was established in 1960. [3]

Kenya

National Bank of Kenya is a commercial bank founded in 1968. Its shares are listed on the Nairobi Stock Exchange and are majority owned (70%) jointly by the Government of Kenya and by the state owned National Social Security Fund of Kenya. [4] [5]

New Zealand

New Zealand currently has one state-owned bank, Kiwibank, established in 2001. [6]

The New Zealand government formerly owned two other banks in New Zealand: The Bank of New Zealand, from 1945 to 1992 when it was privatised and sold, and Post Office Savings Bank, which was created as a separate entity with the privatisation of New Zealand Post. PostBank was sold to ANZ New Zealand in 1989.

The National Bank of New Zealand was a retail bank which, in 2003, was purchased by ANZ from its former owner, Lloyds TSB. In 2013 it was rebranded as ANZ.

Pakistan

National Bank of Pakistan is a major bank in Pakistan.

Palestine

The National Bank TNB is the leading bank in Palestine.

Serbia

National Bank of Serbia is the state-owned central bank in Serbia which regulates the currency Serbian dinar.

South Africa

First National Bank (South Africa) is a commercial bank and is one of the "Big Four" banks in South Africa.

United States of America

In the United States, the term national bank originally referred to the Revolutionary War-era Bank of North America (later the First Bank of the United States) or its successor, the Second Bank of the United States. Both are now defunct.

In the modern United States, the term national bank has a precise meaning: a banking institution chartered and supervised by the Office of the Comptroller of the Currency ("OCC"), an agency in the U.S. Treasury Department, pursuant to the National Bank Act. Inclusion in the bank's name of the word National, the designation National Association, or its abbreviation N.A. is a required part of the distinguishing legal title of a national bank, as in "Citibank, N.A." or "CIT Bank, N.A." Many state banks , by contrast, are chartered by the applicable state government agencies (usually the state's department of banking). The Federal Deposit Insurance Corporation (FDIC) insures deposits at both national and state banks.

The advantage of holding a National Bank Act charter is that a national bank is not subject to state usury laws intended to prevent predatory lending. [7] (However, see also Cuomo v. Clearing House Association, L. L. C. , stating that federal banking regulations do not preempt the ability of states to enforce their own fair-lending laws.) [8] There is currently no federal cap on rates. The federal government only requires that whatever rates, fees, or terms are set by issuers be disclosed to the consumer in accordance with the Truth in Lending Act.

Notwithstanding the name, not all national banks have nationwide operations. Some national banks have operations in only one city, county, or state. National banks should also be distinguished from federal savings associations, including federal savings and loans and federal savings banks, which are financial institutions chartered by the Office of Thrift Supervision, an agency of the U.S. Treasury Department that was merged with the Office of the Comptroller of the Currency on July 21, 2012.

The Federal Reserve is the central bank of the United States; it is not a national bank but rather a unique system of institutions specially chartered by Congress to serve in this capacity.

Related Research Articles

Bank for International Settlements International financial institution owned by central banks

The Bank for International Settlements (BIS) is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through its meetings, programmes and through the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks, and created the United States National Banking System. They encouraged development of a national currency backed by bank holdings of U.S. Treasury securities and established the Office of the Comptroller of the Currency as part of the United States Department of the Treasury and a system of nationally chartered banks. The Act shaped today's national banking system and its support of a uniform U.S. banking policy.

Banking in the United States

Banking in the United States began in the late 1790s along with the country's founding and has developed into highly influential and complex system of banking and financial services. Anchored by New York City and Wall Street, it is centered on various financial services namely private banking, asset management, and deposit security.

A state bank is generally a financial institution that is chartered by a state. It differs from a reserve bank in that it does not necessarily control monetary policy, but instead usually offers only retail and commercial services.

The reserve requirement is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank. The minimum reserve is generally determined by the central bank to be no less than a specified percentage of the amount of deposit liabilities the commercial bank owes to its customers. The commercial bank's reserves normally consist of cash owned by the bank and stored physically in the bank vault, plus the amount of the commercial bank's balance in that bank's account with the central bank.

Postal savings systems provide depositors who do not have access to banks a safe and convenient method to save money. Many nations have operated banking systems involving post offices to promote saving money among the poor.

History of central banking in the United States Aspect of history

This history of central banking in the United States encompasses various bank regulations, from early "wildcat" practices through the present Federal Reserve System.

Banking in Australia is dominated by four major banks: Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank. There are several smaller banks with a presence throughout the country, and a large number of other financial institutions, such as credit unions, building societies and mutual banks, which provide limited banking-type services and are described as authorised deposit-taking Institutions. Many large foreign banks have a presence, but few have a retail banking presence. The central bank is the Reserve Bank of Australia (RBA). Since 2008 the Australian government has guaranteed deposits up to $250,000 per customer per institution against banking failure.

Deposit insurance Fondo de garantía de depósitos

Deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.

Office of Thrift Supervision

The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of another federal agency. Like other U.S. federal bank regulators, it was paid by the banks it regulated. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.

Federal savings associations, in the United States, are institutions chartered by the Office of Thrift Supervision which is now administered by Office of the Comptroller of the Currency after the agencies merged. Institutions chartered by the OTS are still regulated according to the rules and regulations of Federal Savings Banks. Mortgages issued by Federal Savings Banks are pursuant to the provisions of the Home Owners' Loan Act, a U.S. federal statute. Although the activities of federal thrifts were once confined primarily to taking deposits from consumers and making residential mortgage loans, federal thrifts are now authorized to offer a wide range of financial products and services.

In United States banking, a federal savings bank (FSB) is a savings bank that is created under and regulated by United States federal law, and administered by the United States Department of the Treasury's Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation (FDIC) insures deposit accounts in federal savings banks up to prescribed limits.

Bank regulation in the United States is highly fragmented compared with other G10 countries, where most countries have only one bank regulator. In the U.S., banking is regulated at both the federal and state level. Depending on the type of charter a banking organization has and on its organizational structure, it may be subject to numerous federal and state banking regulations. Apart from the bank regulatory agencies the U.S. maintains separate securities, commodities, and insurance regulatory agencies at the federal and state level, unlike Japan and the United Kingdom. Bank examiners are generally employed to supervise banks and to ensure compliance with regulations.

A community bank is a depository institution that is typically locally owned and operated. Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. Lending decisions are made by people who understand the local needs of families, businesses and farmers. Employees often reside within the communities they serve.

This article details the history of banking in the United States. Banking in the United States is regulated by both the federal and state governments.

This article is about the history of monetary policy in the United States. Monetary policy is associated with interest rates and availability of credit.

Bank examiner

A bank examiner is a financial professional who has the task of making sure that banks and savings and loan associations are operating legally and safely, in accordance with the bank regulations imposed on these institutions by the chartering level of government. In the United States, they may conduct supervision on behalf of a U.S. government agency, the Federal Reserve System, a state banking authority, or for the financial institutions themselves as internal auditors. The main duties of a bank examiner are to ensure that a bank's operations are legal and can provide financial stability. A bank examiner will also review financial statements, evaluate the level of risk associated with loans, and assess the management of a bank.

Keith A. Noreika is an American lawyer who specializes in the regulation of financial institutions. He served as Acting Comptroller of the Currency from May 5, 2017, to November 27, 2017, following the 30th Comptroller of the Currency, Thomas J. Curry, and preceding the 31st Comptroller of the Currency, Joseph Otting. Mr. Noreika rejoined the law firm of Simpson Thacher on January 8, 2018.

References

  1. http://www.en.corporativo.bancoestado.cl/Investor_Relations/Corporate_Information/Strategic_Pillars.aspx%5B%5D
  2. "Welcome to Official Website of NABARD". Nabard.org. Retrieved 30 December 2016.
  3. "General Information". Cbi.ir. 19 September 2011. Retrieved 30 December 2016.
  4. "Audited December 2012 Financial Report" (PDF). Nationalbank.co.ke. Retrieved 18 March 2019.
  5. "National Bank sale to investor dropped in new funding plan - Corporate News". Businessdailyafrica.com. Retrieved 30 December 2016.
  6. Huo, Jingjing (2009). Third Way Reforms: Social Democracy After the Golden Age. Cambridge University Press. p. 307. ISBN   9780521518437.
  7. Beneficial National Bank v. Anderson, 539 U.S. 1 (2003).
  8. Cuomo v. Clearing House Association, L. L. C. , 557U.S.___ ( Supreme Court of the United States 2009).