An organization, usually a corporation,chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits,honors instruments drawn on them, and pays interest on them;discounts notes,makes loans, and invests in securities;collects checks,drafts, and notes;certifies depositor's checks; and issues drafts and cashier's checks.
a bank which has been set up by government charter, formerly used in England, but now only done in the USA and Canada.
chartered-adjective in the UK, used to describe a company which has been set up by charter, and not registered under the Companies Act.
National Bank-A federally chartered bank which is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation.
A chartered bank is an institution whose primary business is financial intermediation, meaning the bringing together of borrowers and lenders. Chartered banks offer a range of other financial services to their customers including cheque clearing, credit cards and safekeeping as well as investment and insurance services. Banks' profits come from the spread between interest paid to depositors by the bank and the interest paid to the bank by borrowers.
Banks receive their charters from the federal government under the BANK ACT. Formerly, banks required a special Act of Parliament in order to receive their charter. However, since 1980 banks have been chartered by letters patent which is a legal requirement not requiring special approval by Parliament.
a bank which has been set up by government charter, formerly used in England, but now only done in the USA and Canada.
chartered-adjective in the UK, used to describe a company which has been set up by charter, and not registered under the Companies Act.
National Bank-A federally chartered bank which is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation.
A chartered bank is an institution whose primary business is financial intermediation, meaning the bringing together of borrowers and lenders. Chartered banks offer a range of other financial services to their customers including cheque clearing, credit cards and safekeeping as well as investment and insurance services. Banks' profits come from the spread between interest paid to depositors by the bank and the interest paid to the bank by borrowers.
Banks receive their charters from the federal government under the BANK ACT. Formerly, banks required a special Act of Parliament in order to receive their charter. However, since 1980 banks have been chartered by letters patent which is a legal requirement not requiring special approval by Parliament.
Banks are named under 2 different schedules in the Act. Schedule I banks are widely held (no single person or corporation may control more than 10% of the voting stock and foreign ownership is limited to 25%); Schedule II banks are closely held (ownership is more concentrated). Many Schedule II banks are foreign-owned and their size is controlled by the federal government. In keeping with the provisions of the Free Trade Agreement, the size of US-owned Schedule II banks is not controlled.
The business of banking has changed dramatically in recent years with the introduction of electronic banking and increased competition from Schedule II banks. Several large Schedule I banks have argued that they should be allowed to merge in order to respond to this increased competition. Whether these mergers go ahead is a controversial issue that must ultimately be decided by the federal government.
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