Create Currency Charter For Free

Most of the would-be bank founders who come to Carpenter for guidance are groups, but it's possible for a single wealthy person to start a bank and own 100 percent of it. "Several years back, we did one in which an individual put in $50 million and started his own bank," Carpenter recalls.

The Federal Reserve is the federal regulator of about 1,000 state-chartered member banks, and cooperates with state bank regulators to supervise these institutions. The Federal Reserve also regulates all bank holding companies.

The OCC was created by Abraham Lincoln to fund the American Civil War but was later transformed into a regulatory agency to instill confidence in the federal banking system, ensure it operates in a safe and sound manner, and treats customers fairly.

Applying for a Bank Charter Before granting a charter, the chartering regulator must determine that the applicant bank has a reasonable chance for success and will operate in a safe and sound manner. Next, the proposed bank must obtain approval for deposit insurance from the Federal Deposit Insurance Corporation.

Most chartered banks have received their government's permission to operate in the financial services industry. The OCC has the power to grant or deny applications for new charters for national banks and federal savings associations.

Charters are issued by state chartering authorities (usually state bank regulators) or at the federal level by the Office of the Comptroller of the Currency (OCC). 1 Credit unions are also chartered at the state level by state regulators or by the National Credit Union Administration (NCUA) at the federal level.

Chartered banks can be issued by the state or federal government. All chartered banks must maintain deposit insurance issued by the Federal Deposit Insurance Corporation (FDIC). Chartered banks may offer online banking as well as physical branches you can visit, or may be online-only banks.