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 ?
Arif Usmani, President National Bank of Pakistan, comments: "Remittances play a vital role in the economy of Pakistan.
He also noted that the National Bank will continue the policy of inflation targeting.
Each recipient of the Peoples National Bank scholarship receives a $500 scholarship.
38 First National Bank of Wynne (#) $292,251 $309,887
Afghanistan National Bank Jalalabad branch Operational Manager Yousaf Khan said National Bank Gilgit branch General Manager Zarwali Khan has been appointed as inquiry officer.
The former president of National Bank has made the prime minister, finance secretary, cabinet division, State Bank governor and board of directors of National Bank parties in his petition.
The MoU signing ceremony was also attended by the large gathering of National Bank Executives and Postal Officers.
Mars National Bank is committed to remaining a relationship driven, independent community bank, which offers competitive products and services, made up of dedicated professionals who are passionate about serving our customers in a personal, efficient and friendly manner.
The National Bank has enough reserves to support the som rate, he said.
The banks have allocated $25m of the $50m to provide foreign currency for National Bank of Egypt clients to finance imports and exports at a competitive rate for up to three years.

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