# "National" banks? **URL:** \ **Category:** Factual Questions\ **Created:** [June 12, 2000, 10:08pm UTC](https://boards.straightdope.com/t/national-banks/22171 "2000-06-12T22:08:17Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![don\_Jaime](https://avatars.discourse-cdn.com/v4/letter/d/b4bc9f/32.png) [@don\_Jaime](https://boards.straightdope.com/u/don_Jaime)\ **Post date:** [June 12, 2000, 10:08pm UTC](https://boards.straightdope.com/t/national-banks/22171/1 "2000-06-12T22:08:17Z")
Just an odd thought. As I passed the McClain County National Bank the other day, I wondered how you can be county and national at the same time. What does it mean to be a “National” bank? Sorry, but I dodged finance classes. Stone broke in mind and money, Jaime. ---
**Author:** ![winky99](https://avatars.discourse-cdn.com/v4/letter/w/71c47a/32.png) [@winky99](https://boards.straightdope.com/u/winky99)\ **Post date:** [June 12, 2000, 11:00pm UTC](https://boards.straightdope.com/t/national-banks/22171/2 "2000-06-12T23:00:59Z")
WAG, FDIC maybe? ---
**Author:** ![bibliophage](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bibliophage/32/7615_2.png) [@bibliophage](https://boards.straightdope.com/u/bibliophage)\ **Post date:** [June 12, 2000, 11:03pm UTC](https://boards.straightdope.com/t/national-banks/22171/3 "2000-06-12T23:03:00Z")
From [http://usgovinfo.about.com/newsissues/usgovinfo/library/weekly/aa081599.htm](http://usgovinfo.about.com/newsissues/usgovinfo/library/weekly/aa081599.htm) > [@](#): > > What is a “National” Bank > Any bank using the phrase, “National Bank” in its name must be a member of the Federal Reserve System. They must maintain minimum levels of reserves with one of the 12 Federal Reserve banks and must deposit a percentage of their customers’ savings account and checking account deposits in a Federal Reserve bank. All banks incorporated under a national charter are required to become members of the Federal Reserve System. Banks incorporated under a state charter may apply for membership. ---
**Author:** ![bibliophage](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bibliophage/32/7615_2.png) [@bibliophage](https://boards.straightdope.com/u/bibliophage)\ **Post date:** [June 12, 2000, 11:06pm UTC](https://boards.straightdope.com/t/national-banks/22171/4 "2000-06-12T23:06:34Z")
Another good site: [Office of the Comptroller of the Currency](http://www.occ.ustreas.gov/Pubinf.htm), which regulates national banks. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [June 13, 2000, 12:12am UTC](https://boards.straightdope.com/t/national-banks/22171/5 "2000-06-13T00:12:44Z")
While I’m not trying in any way to disagree with Bibliophage(he is correct), … The Federal Reserve system has been around since when??? about 1912 or so. There were plenty of banks in the last century with names such as "The First National Bank of New York…etc. It may be that you had to be a member of the Fed. Reserve after it’s inception to use that title any more. I just got on and haven’t tried to research it. Just going on experience and memory. ---
**Author:** ![bibliophage](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bibliophage/32/7615_2.png) [@bibliophage](https://boards.straightdope.com/u/bibliophage)\ **Post date:** [June 13, 2000, 4:26am UTC](https://boards.straightdope.com/t/national-banks/22171/6 "2000-06-13T04:26:15Z")
**samclem** brings up a good point that I hadn’t considered. I found from the _Encyclopedia Americana_ and [this site](http://cato.org/pubs/pas/pa060.html) that before the Federal Reserve system was established in 1913, the federal government chartered banks under the National Banking Act of 1863. These federally-chartered banks were called “national banks.” ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [June 13, 2000, 1:19pm UTC](https://boards.straightdope.com/t/national-banks/22171/7 "2000-06-13T13:19:17Z")
Exactly, Biblophage. You can be FDIC insured without being a “National” bank (and I suppose you could be a National bank without being FDIC insured, but I doubt anyone would every try). The Federal government charters national banks. Other banks are chartered by other authorities. In New York, you have savings banks (one set of rules) and commercial banks (another set). Savings banks in NY need to have the word “Savings Bank” in their title. Back when the chartering was new, you often had two banks in a city using the Federal charter. That’s why you have First National Bank and Second National Bank as titles. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [June 13, 2000, 11:31pm UTC](https://boards.straightdope.com/t/national-banks/22171/8 "2000-06-13T23:31:41Z")
> [@](#): > > Back when the chartering was new, you often had two banks in a city using the Federal charter. That’s why you have First National Bank and Second National Bank as titles. Can you tell me why there would be a “Thirteenth Second National Bank”? There really are these weird combinations out there. At least historically.