Establish Currency Charter For Free

How a Chartered Bank Works. In the U.S., chartered banks can be regulated by the state or federal government. While state charters are controlled by state agencies, federal charters abide by federal regulations set forth by the OCC, a division of the Treasury Department.

Applying for a Bank Charter The proposed bank must first receive approval for a federal or state banking 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.

The OCC charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury.

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.

On February 25, 1863, President Lincoln signed The National Currency Act into law. The Act established the Office of the Comptroller of the Currency (OCC), charged with responsibility for organizing and administering a system of nationally chartered banks and a uniform national currency.

The OCC has the power to grant or deny applications for new charters for national banks and federal savings associations.

The National Banking Act of 1863 laid the groundwork for the creation of a national banking system. It also led to the establishment of a national currency backed by government securities held by other banks and gave the federal government the ability to sell war bonds and securities.