national bank


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national bank,

in the United States, financial institution of a class authorized by Congress in acts of 1863 and 1864. The acts were intended to provide a way of marketing the large bond issues made necessary by the Civil War and to give circulation to a paper currency more trustworthy than the notes of state banks had proved to be. The act of 1864 authorized the formation of private banking corporations that were to invest a large part of their capital in bonds of the United States and that might then issue their notes as currency. The amount of the notes was not to exceed 90% of either the face value or the par value of the bonds, depending on which of the two was smaller. Subsequent acts modified the act of 1864 in various details, and the plan was changed fundamentally by the Federal Reserve Act of Dec. 23, 1913, which provided for the gradual substitution of Federal Reserve notes and Federal Reserve bank notes for national bank notes. The Federal Reserve Act also required all national banks to become members of the Federal Reserve SystemFederal Reserve System,
central banking system of the United States. Established in 1913, it began to operate in Nov., 1914. Its setup, although somewhat altered since its establishment, particularly by the Banking Act of 1935, has remained substantially the same.
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Bibliography

See bibliography under bankingbanking,
primarily the business of dealing in money and instruments of credit. Banks were traditionally differentiated from other financial institutions by their principal functions of accepting deposits—subject to withdrawal or transfer by check—and of making loans.
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References in periodicals archive ?
The newly formed bank, which will retain the California National Bank name, has branches spanning from Ventura to Orange County and the Palisades to Pasadena.
First National Bank recently has suffered financial and managerial difficulties that have prevented it from being an effective competitor.
Certain statements in this press release, including statements regarding the anticipated impact of merged operations, growth and customer base, represent the intent, belief or current expectations of 1st Pacific Bancorp and Landmark National Bank and are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995.
The 1996 Examination concluded that First National Bank was responsive to its community's credit needs, including the credit needs of low- and moderate-income individuals and areas.
Over the years, First National Bank has grown to 13 branches and now covers a geographic area from San Francisco, south to Redwood City, and west to the coast where it has four coastside branches.
In addition to its corporate office in Great Neck, Community National Bank has a branch office in Garden City and plans to open three more offices later this year in Woodbury, New Hyde Park and Oceanside.
First National Bank has been putting our customers first for 118 years, and BSG Financial's CourtesyConnect fits our primary need perfectly," said Charlie Henthorn, president of First National Bank.
Felter, Senior Vice President and Chief Financial Officer at The First National Bank of Ipswich, stated, "The sale of the trust department is one of the many steps the Bank is taking to fulfill the commitment to return the Bank to profitability.
The establishment of HSBC National Bank USA will help in continuing our expansion into markets that fit strategically with our ongoing growth effort.
To uphold the National Bank Act and ensure the maintenance of a level playing field among state-chartered corporations with respect to all permitted banking activities, NAR is asking the court to reverse the decision of the OCC.
Diablo National Bank, Peninsula Bank of Commerce and Santa Clara Valley National Bank.
Commenting on the sale, Priscilla Cubelli, Senior Vice President of First National Bank of Ipswich's Trust Department, stated, "I am very excited to join Eastern Bank; I am sure our customers will be pleased with Eastern Bank's commitment to quality customer service.

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