National Bank

A national bank is a type of commercial bank in the US. Internationally, “national bank” and “central bank” are interchangeable terms for banks that are under the control of a nation’s national government. Within national economies, central banks determine monetary policies.

Internationally and in the United States, national banks play a significant role in determining a nation’s financial system. The Federal Reserve is essential for maintaining financial stability, particularly during recessions or when the economy is experiencing downturns. 

Daily interactions between national banks and their regional Federal Reserve Bank (commonly known as a Fed), such as Fed bank wires, may be facilitated. Each quarter, national banks are required to produce call reports for the Fed and make sure they are made available to the public.