How long can a bank be closed during the holidays?

Answer 1

Banks are like any other companies. They can be closed for public holidays. But to ensure that the bank closure does not affect customers and businesses adversely, banks cannot be closed for a period of more than 3 consecutive days. Even if other institutions close down for say a period of a week or so, banks have to reopen at the end of the 3rd day.

Answer 2

This is a perpetuated myth; a fallacy.

There is NO federal law or regulation that requires financial institutions (FIs) to be open on certain days or that prohibits them from closing for a specified number of consecutive days.

"The Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. 102--242, 105 Stat. 2236) (FDICIA) was enacted on December 19, 1991. Section 228 of the FDICIA added a new section 42 to the Federal Deposit Insurance Act (12 U.S.C. 1831r--1) (FDI Act) that imposes notice requirements on insured depository institutions that intend to close branches."

This law, however, is specific to "branch" closings which might have significant, long-term impact on local communities. As such, FIs are required to notify their prudential regulators and provide sufficient analysis and substantiation for such permanent closings.

For those who might disagree, please provide a regulatory citation for your position.