Switching primary federal regulators: Is it beneficial for U.S. banks?

In the United States, commercial banks can select among three primary federal regulators. A bank chooses a chartering agency and decides whether it will be a Federal Reserve System (Fed) member, thereby selecting its regulatory authority. A nationally chartered bank is regulated by the Office of the Comptroller of the Currency (OCC). If it is a Fed member, a state-chartered bank has the Fed as its primary federal regulator; otherwise, it is overseen by the Federal Deposit Insurance Company (FDIC).1 By choosing its charter and deciding whether to be a Fed member, a bank effectively selects its regulator.