What is the National Bank Act?

The National Bank Act, also known as the National Currency Act, is a federal law that was passed by the United States Congress in 1863. Its main purpose was to create a national banking system in the United States, which would allow banks to issue currency and create a uniform set of rules and regulations for national banks. The Act also provided for the establishment of national banking associations, which could be chartered by the Comptroller of the Currency. These associations were given the authority to receive deposits, make loans and issue national bank notes, with notes issued being backed by U.S. Treasury securities. The Act also established the Office of the Comptroller of the Currency, which is responsible for supervising and regulating the activities of national banks. In addition, the Act established a system of reporting requirements to ensure that banks were lending responsibly and were able to pay out deposits. In North Carolina, these requirements are overseen by the North Carolina State Banking Commission. The National Bank Act also established the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to a certain amount in the event of a bank failure, providing additional protection to consumers. National banks are required to follow the regulations set forth by the Act in order to remain in operation.

Related FAQs

What are the rules and regulations related to consumer banking?
What is the Bank Holding Company Supervision Act?
What is the Uniform Electronic Transactions Act?
What is FDIC insurance?
What is the Electronic Signatures in Global and National Commerce Act?
What is the Federal Trade Commission Act?
What is the U.S. Bankruptcy Code?
What is the Fair Credit Billing Act?
What is the International Banking Act?
What is the Fair Credit Reporting Act?

What is the National Bank Act?

Related FAQs

Related Blog Posts