Frequently Asked Questions
Banking Information ip to content
What institutions are members of the Federal Reserve System, and what does membership entail?
How many U.S. commercial banks exist?
How are Internet banks regulated?
Where can I find out about the status of a bank holding company merger or acquisition?
Where can I find a merger application?
Where can I find information about a bank that seems to have closed?
What is the Community Reinvestment Act, and where can I find a bank's CRA rating?
What is the FDIC, and what does it mean if a bank is an FDIC member?
Where can I find Call Report data?
How do I know if a bank is "safe and sound"?
What is the difference between a bank and a credit union?
Where can I find a list of banks in my area?
Return to FAQ home
What institutions are members of the Federal Reserve System, and what does membership entail?
National banks--those chartered by the federal government (through the Office of the Comptroller of the Currency in the Department of the Treasury)--by law are members of the Federal Reserve System. State-chartered banks and trust companies may apply for membership. To be accepted as a member, an applicant must meet requirements set by the Board of Governors.
Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, of which 3 percent must be paid in; the remaining 3 percent is subject to call by the Board of Governors. The holding of stock in a Federal Reserve Bank does not carry with it the control and financial interest conveyed to holders of common stock in for-profit organizations. It is merely a legal obligation that goes along with membership, and the stock may not be sold or pledged as collateral for loans. Member banks annually receive a 6 percent dividend on their stock, as specified by law, and vote for some of the directors (so-called class A and class B directors) of their Reserve Bank.
How many U.S. commercial banks exist?
The most recent list of U.S. commercial banks is available at the FDIC Bank Data and Statistics web site. U.S. commercial banks are financial institutions that accept deposits backed by the Federal Deposit Insurance Corporation (FDIC).
How are Internet banks regulated?
The way an Internet bank is regulated depends in large part on the type of institution it is. Some Internet banks are Internet sites on which customers of bricks-and-mortar depository institutions can access transaction services. Other Internet banks operate only through the Internet (Internet-only).
The Federal Deposit Insurance Corporation (FDIC) monitors both types of institutions. Internet banks that qualify as thrift institutions may be regulated by the Office of Thrift Supervision (OTS). Those that are considered national banks are regulated by the Office of the Comptroller of the Currency (OCC).
The FDIC's Institution Directory lists which federal agency is the primary regulator for specific banks, including Internet banks.
Return to questions
Where can I find out about the status of a bank holding company merger or acquisition?
The Federal Reserve Board's H.2a release, "Notice of Formation and Mergers of, and Acquisitions by, Bank Holding Companies; Change in Bank Control," provides the most recent list of bank holding company mergers and acquisitions.
Additional information on all bank holding companies is available at the National Information Center web site.
Where can I find a merger application?
Different types of application forms are required depending on the status of the applicant organization.
Application filing information
Where can I find information about a bank that seems to have closed?
The Federal Reserve System's National Information Center provides this information in its institution history database.
What is the Community Reinvestment Act, and where can I find a bank's CRA rating?
The Community Reinvestment Act (CRA) of 1977 was passed by Congress to ensure that banks meet the credit needs of their local communities and to encourage investment in the immediate communities served by depository institutions. Banks are rated periodically on their efforts to achieve these goals.
The Federal Financial Institutions Examination Council (FFIEC) provides an interagency CRA rating database on its web site.
In addition, each bank has available for public review a file giving its CRA rating and additional information that it is required to prepare.
Return to questions
What is the FDIC, and what does it mean if a bank is an FDIC member?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress in 1933. It is the primary federal regulator of state-chartered banks that are not members of the Federal Reserve System. In addition, it insures the deposits of member banks, up to $100,000 per account. Almost all U.S. banks and savings associations are members of the FDIC.
Where can I find Call Report data?
The FDIC web site offers the last few Call Reports for individual, FDIC-insured financial institutions.
How do I know if a bank is "safe and sound"?
Government regulatory agencies do not make public their ratings on the safety and soundness of banks and thrifts; however, some private companies offer either bank ranking services or credit rating/analytical services. While the FDIC and the Federal Reserve System do not endorse, or confirm the information provided by these companies, the FDIC does provide a list of firms as a service to consumers.
What is the difference between a bank and a credit union?
A bank is a for-profit organization. Banks hold deposits, make loans, pay checks, and provide other related services for the public. They collect funds from three sources: demand, savings, and time deposits; short-term borrowings from other banks; and equity capital.
A credit union is a not-for-profit financial cooperative that makes personal loans and offers other consumer banking services to individuals sharing a common bond or affiliation, such as a common employer. Because credit unions operate as not-for-profit institutions, they are exempt from both federal and local taxes. Consequently, credit unions can charge below-market rates on loans while paying higher rates to savers. A credit union gets its operating funds from shares purchased by individual owners, who are members. It also pays dividends (representing the payment of interest) out of earnings.
Where can I find a list of banks in my area?
The Federal Reserve System's National Information Center (NIC) searchable database lists banks by location.
| 