Corporation chartered by a state to engage in commercial banking, and subject to supervision under banking laws in the chartering state. State banks differ fromNational Banks which are chartered and supervised by the Comptroller of the Currency. State banks have access to Federal Reserve services, such as check collection, currency and coin delivery, and the Fed Wire, and can become member institutions in the Federal Reserve System.
Regulations in some states give state chartered banks more authority than national banks to engage in selected nonbank activities, such as insurance underwriting and brokerage, securities underwriting, and real estate investments, which accounts for the diversity of banking under the Dual Banking system. Supervision of state chartered banks is shared by State Banking Departments and the Federal Deposit Insurance Corporation , which insures deposits of most regulated financial institutions.
