National Bank: Definition, How It Works, History, and Examples

What is a national bank?

A national bank is a commercial bank chartered and supervised by the Office of the Comptroller of the Currency (OCC). In U.S. usage, the term also commonly refers to banks that operate nationally rather than locally.

Key points
* Chartered and regulated by the OCC.
* Required to be members of the Federal Reserve System.
* Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category.
* Large national banks hold a significant share of the nation’s banking assets; the biggest institutions include JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup.

How national banks operate

National banks provide standard commercial banking services: accepting deposits, making loans, processing payments, and facilitating wire transfers through the Federal Reserve. Their federal charter subjects them to OCC oversight on activities and operations, and they must submit regular call reports to the Federal Reserve, which are made public.

Membership and protections
* Federal Reserve: National banks are investing members of their regional Federal Reserve Bank and interact with the Fed for settlement and payment services.
* FDIC insurance: Eligible deposits are insured up to established limits, which helps maintain public confidence in the banking system.

Brief history

• First Bank and early national banking: Alexander Hamilton helped establish the First Bank of the United States in the 1790s to collect taxes, pay government bills, and issue a national banknote.
• 1863 — National Currency Act: Created the OCC to charter and regulate nationally chartered banks and to standardize the national currency.
• 1913 — Federal Reserve Act: Established the Federal Reserve System to serve as the nation’s central banking system.
• 1930s — FDIC and reforms: The Glass–Steagall era reforms included creation of the FDIC to insure deposits and restore confidence after bank failures.

Examples of national banks

The OCC maintains a current list of national banks and federal savings associations it charters and regulates. Examples include:
* JPMorgan Chase Bank, National Association
* U.S. Bank National Association
* Hawaii National Bank
* National Bank & Trust
* Neighborhood National Bank

The OCC also charters smaller, specialized banks, including minority-led and community-focused institutions.

Common questions

What is a national bank charter?
* A national bank charter is a federal authorization that allows an institution to operate as a bank and offer financial services such as deposit-taking and lending. Bank organizers choose between state and national charters when forming a new bank.

Who supervises national banks?
* The Office of the Comptroller of the Currency (OCC), an independent bureau of the U.S. Department of the Treasury, supervises national banks.

What is a national bank holiday?
* National bank holidays are days on which the Federal Reserve observes a holiday and many financial services close nationwide (for example, federal holidays such as Christmas or Independence Day).

Why national banks matter

National banks are a core part of the federal banking system, providing stability, payments infrastructure, and credit across the economy. Federal chartering and oversight, together with FDIC insurance and Federal Reserve membership, are designed to promote safety, public confidence, and resilience while allowing banks to innovate and serve customers’ needs.