Set Out Currency Charter For Free

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 FDIC requires that de novo banks have anywhere from 12-20 million dollars in startup capital. The bank must prove that it can withstand initial losses and economic downturns and that it will operate ethically.

The charter value of a bank is broadly defined as the value that would be foregone due to a closure. Our simulations of risk taking show that an optimal forbearance for an insolvent bank with a large enough charter value alleviates the moral hazard problem.

Find out if your bank or lender is regulated by a federal agency. To do so, use the Federal Financial Institutions Examination Council's Consumer Help Center. If your bank or lender is federally regulated, the Help Center will state who the federal regulator is: Office of the Comptroller of the Currency (800-613-6743)

If it says that the regulator is the Office of the Controller of the Currency, it is a federal bank, and that is the agency you want to contact. You can and should also contact the Consumer Financial Protection Bureau. If it says that the regulator is the FDIC, it is likely a state-chartered bank.

A bank charter is effectively a business license that is required for depository institutions and certain financial institutions providing other bank-like services.

A bank's actual charter lays out operational guidelines for the bank, along with how it will comply with relevant regulations. This might include how the bank will maintain a certain minimum capital requirement.

The Dual Banking System National banks are chartered and regulated under federal laws and are supervised by a central agency. State banks are chartered and regulated under state laws and are supervised by a state agency.

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.

Next, here's a look at what a federally chartered bank is. It's a bank that receives its charter from the federal government. The Office of the Comptroller of the Currency is responsible for regulating nationally-chartered banks and savings associations. The OCC is an independent branch of the Treasury Department.