State bank
Encyclopedia
A state bank is generally a financial institution
that is chartered by a state
. It differs from a reserve bank
in that it does not necessarily control monetary policy (indeed, the state in question may have no legal capacity to create monetary policy), but instead usually offers only retail and commercial services.
A state bank that has been in operation for five years or less is called a de novo bank.
." All national banks are chartered and regulated by the Office of the Comptroller of the Currency
. State banks are chartered and regulated by a state agency (often called the Department of Financial Institutions) in the state in which its headquarters are located. In addition, state banks that are members of the Federal Reserve are regulated by the Federal Reserve; state banks that are not members of the Federal Reserve are regulated by the Federal Deposit Insurance Corporation
(FDIC). Therefore, almost every state bank has both a state and federal regulator. There are a handful of state banks which do not have FDIC insurance.
formerly had a state bank, but all have since been privatised. Although the Commonwealth Bank of Australia was to some extent a state bank by the above definition before privatisation, the word ‘state’ in Australia refers predominantly to the subnational entities.
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
that is chartered by a state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
. It differs from a reserve bank
Reserve Bank
Reserve Bank can amongst other things be:*Reserve Bank of Australia*Reserve Bank of Fiji*Reserve Bank of India*Reserve Bank of New Zealand*South African Reserve Bank*Federal Reserve Bank *Reserve Bank of Vietnam...
in that it does not necessarily control monetary policy (indeed, the state in question may have no legal capacity to create monetary policy), but instead usually offers only retail and commercial services.
A state bank that has been in operation for five years or less is called a de novo bank.
United States
In the United States the term "state bank" is used in contradistinction to "national bankNational bank
In banking, the term national bank carries several meanings:* especially in developing countries, a bank owned by the state* an ordinary private bank which operates nationally...
." All national banks are chartered and regulated by the Office of the Comptroller of the Currency
Office of the Comptroller of the Currency
The Office of the Comptroller of the Currency is a US federal agency established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States...
. State banks are chartered and regulated by a state agency (often called the Department of Financial Institutions) in the state in which its headquarters are located. In addition, state banks that are members of the Federal Reserve are regulated by the Federal Reserve; state banks that are not members of the Federal Reserve are regulated by the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC). Therefore, almost every state bank has both a state and federal regulator. There are a handful of state banks which do not have FDIC insurance.
Australia
Each Australian stateStates and territories of Australia
The Commonwealth of Australia is a union of six states and various territories. The Australian mainland is made up of five states and three territories, with the sixth state of Tasmania being made up of islands. In addition there are six island territories, known as external territories, and a...
formerly had a state bank, but all have since been privatised. Although the Commonwealth Bank of Australia was to some extent a state bank by the above definition before privatisation, the word ‘state’ in Australia refers predominantly to the subnational entities.
List of state banks
- State Bank of PakistanState Bank of PakistanThe State Bank of Pakistan is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged...
- State Bank of IndiaState Bank of IndiaThe State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
- State Bank of New South WalesState Bank of New South WalesThe State Bank of New South Wales was a bank that was owned by the Government of New South Wales. It existed from 1933 until 2000, when it was taken over by the Commonwealth Bank....
(now part of the Commonwealth Bank) - State Bank of South AustraliaState Bank of South AustraliaThe State Bank of South Australia was a bank owned by the Government of South Australia. Its collapse in 1991 was a major political event in South Australia...
(now the Bank of South Australia, owned by St.George Bank) - State Bank of VictoriaState Bank of VictoriaThe State Bank of Victoria was a bank that existed from 1842 until 1990 when it was taken over by the Commonwealth Bank. It was owned by the State of Victoria....
(defunct) - State Bank of VietnamState Bank of VietnamThe State Bank of Vietnam is the central bank of Vietnam.-History:When French Indochina was under French rule, the colonial government governed the Indochinese monetary system through Indochinese Bank, which also acted as a commercial bank in French Indochina...
- BankWest — the Bank of Western Australia, now owned by Commonwealth Bank