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.
