National bank (United States)

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'''National bank''', tn the United States refers to a precise meaning: a banking institution chartered and supervised by the [[Office of the Comptroller of the Currency]] ("OCC"), an agency in the [[United States Treasury Department|U.S. Treasury Department]], pursuant to the [[National Bank Act]]. Inclusion in the bank's name of the word ''National'',<ref>.</ref><ref>[https://ift.tt/2NnWA9D 12 CFR § 5.20(e)(1)(i)].</ref> 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 bank]]s'', 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.<ref>''Beneficial National Bank v. Anderson'', .</ref> (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.)<ref name=cuomovclearinghouse>Liquid error: wrong number of arguments (given 1, expected 2) |quote=}}</ref> 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 loan association|savings and loans]] and [[federal savings bank]]s, 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 System|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.

==References==


== See also ==
* [[State bank (United States)]]
* [[Federal savings association]]
* [[Federal savings bank]]
* [[USAA|USAA Federal Savings Bank]]



[[Category:Banking in the United States]]
[[Category:Financial services in the United States]]

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