National bank

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In banking, the term national bank carries several meanings:

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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.

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.

Argentina

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

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.

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

In India there are 18 major nationalised banks which dominate the banking sector due to their large size and widespread network.

Public Sector Banks (Government Shareholding %, as of 31st Dec '18)
  1. Allahabad Bank (79.41%)
  2. Andhra Bank (84.83%)
  3. Bank of India (99.99%)
  4. Bank of Baroda (63.74%)
  5. Bank of Maharashtra (87.01%)
  6. Canara Bank (72.55%)
  7. Central Bank of India (88.02%)
  8. Corporation Bank (84.96%)
  9. Indian Bank (81.73%)
  10. Indian Overseas Bank (91.99%)
  11. Oriental Bank of Commerce (77.23%)
  12. Punjab & Sind Bank (79.62%)
  13. Punjab National Bank (70.22%)
  14. State Bank of India (58.53%)
  15. Syndicate Bank (81.23%)
  16. UCO Bank (93.29%)
  17. Union Bank of India (67.43%)
  18. United Bank of India (92.25%)

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. [2]

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. [3] [4]

New Zealand

New Zealand currently has one state-owned bank, Kiwibank, established in 2001. [5]

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

In the United States, the term national bank originally referred to the Revolutionary War-era Bank of North America, its successor, the First Bank of the United States, or its successor, the Second Bank of the United States. All 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, [6] [7] 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. [8] (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.) [9] 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

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

A central bank, reserve bank, or monetary authority is an 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 a financial crisis. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.

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 Began in the late 1790s

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.

Financial institution Institution that provides financial services for its clients or members

Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions:

  1. Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;
  2. Contractual institutions – insurance companies and pension funds
  3. Investment institutions – investment banks, underwriters, brokerage firms.
ANZ Bank New Zealand company

ANZ Bank New Zealand Limited, New Zealand's largest financial-services group, operates as a subsidiary of Australia and New Zealand Banking Group Limited of Australia. Until 2012, ANZ operated in New Zealand under the legal entity ANZ National Bank Limited, which was formed as part of the 2012 merger of ANZ Banking Group Limited and the National Bank of New Zealand Limited. From 2012, the company was renamed ANZ Bank New Zealand as part of the merger of ANZ and the National Bank brands. ANZ New Zealand operates under a variety of different brands, such as ANZ, UDC Finance, Bonus Bonds and Direct Broking. It provides a number of financial services, including banking services, asset finance, investments and payment "solutions".

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 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.

Office of the Comptroller of the Currency American federal government organization

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 acting Comptroller of the Currency is Brian P. Brooks, who took office in May 2020.

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 (ADIs). Many large foreign banks have a presence, but few have a retail banking presence. The central bank is the Reserve Bank of Australia (RBA). The Australian government’s Financial Claims Scheme (FCS) guarantees deposits up to $250,000 per account-holder per ADI in the event of the ADI failing.

Community development bank (CDB) or Community Development Financial Institution (CDFI) is a development bank or credit union that focus on serving people who have been locked out of the traditional financial systems such as the unbanked or underbanked in deprived local communities. They emphasize the long term development of communities and provide loans such as micro-finance or venture capital.

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.

Commonwealth banknote-issuing institutions also British Empire Paper Currency Issuers comprises a list of public, private, state-owned banks and other government bodies and Currency Boards who issued legal tender: banknotes.

The Big Four is the colloquial name given to the four main banks in several countries where the banking industry is dominated by just four institutions and where the phrase has thus gained currency.

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.

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.

Joseph Otting President/CEO of bank

Joseph M. Otting is an American businessman and government official. He served as the 31st Comptroller of the Currency from November 27, 2017 to May 29, 2020.

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. Noreika rejoined the law firm of Simpson Thacher on January 8, 2018.

References

  1. "Archived copy". Archived from the original on 27 December 2013. Retrieved 24 December 2012.CS1 maint: archived copy as title (link)
  2. "General Information". Cbi.ir. 19 September 2011. Retrieved 30 December 2016.
  3. "Audited December 2012 Financial Report" (PDF). Nationalbank.co.ke. Retrieved 18 March 2019.
  4. "National Bank sale to investor dropped in new funding plan - Corporate News". Businessdailyafrica.com. Retrieved 30 December 2016.
  5. Huo, Jingjing (2009). Third Way Reforms: Social Democracy After the Golden Age. Cambridge University Press. p. 307. ISBN   9780521518437.
  6. 12 U.S.C.   § 22.
  7. 12 CFR § 5.20(e)(1)(i).
  8. Beneficial National Bank v. Anderson, 539 U.S. 1 (2003).
  9. Cuomo v. Clearing House Association, L. L. C. , 557U.S.___ ( Supreme Court of the United States 2009).