In Australia and the United States, a state bank in a

federated state A federated state (also State (polity), state, province, region, Canton (administrative division), canton, Länder, land, governorate, oblast, emirate, or country) is a territorial and constitutional community forming part of a federation ...

is usually a

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

that is chartered by the government of that state, as opposed to one regulated at the federal or national level. In

British English British English is the set of Variety (linguistics), varieties of the English language native to the United Kingdom, especially Great Britain. More narrowly, it can refer specifically to the English language in England, or, more broadly, to ...

, the term is more or less synonymous with the term " national bank", which refers to any bank owned and operated by a government or state.

Australia

Each

Australian state The states and territories are the national subdivisions and second level of government of Australia. The states are partially sovereignty, sovereign, administrative divisions that are autonomous administrative division, self-governing polity, ...

formerly had a state bank, but all have since been privatised. *

New South Wales New South Wales (commonly abbreviated as NSW) is a States and territories of Australia, state on the Eastern states of Australia, east coast of :Australia. It borders Queensland to the north, Victoria (state), Victoria to the south, and South ...

** Government Savings Bank of New South Wales: established 1871, collapsed 1931 and taken over by

Commonwealth Bank The Commonwealth Bank of Australia (CBA), also known as Commonwealth Bank or simply CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom. It provides a variety of fi ...

State Bank of New South Wales The State Bank of New South Wales, from 1933 until 1981 known as the Rural Bank of New South Wales, was a bank that was owned by the Government of New South Wales. In 1994, it was taken over by Colonial Mutual and became the Colonial State Bank ...

: established 1933, privatised and sold to

Colonial Mutual The Colonial Mutual Life Assurance Society Limited, later Colonial Limited, and commonly known as Colonial Mutual, Colonial Mutual Life, and/or CML, was a diverse international financial services company headquartered in Melbourne, Australia. Co ...

in 1994 *

Queensland Queensland ( , commonly abbreviated as Qld) is a States and territories of Australia, state in northeastern Australia, and is the second-largest and third-most populous state in Australia. It is bordered by the Northern Territory, South Austr ...

Queensland Government Savings Bank The Queensland Government Savings Bank was a bank in Queensland, Australia. It was operated by the Queensland Government. It was also known as the Government Savings Bank of Queensland. History The Queensland Government Savings Bank was estab ...

: established 1865, taken over by Commonwealth Bank of Australia in 1920 *

South Australia South Australia (commonly abbreviated as SA) is a States and territories of Australia, state in the southern central part of Australia. With a total land area of , it is the fourth-largest of Australia's states and territories by area, which in ...

Savings Bank of South Australia The Savings Bank of South Australia was a bank founded in the colony of South Australia in 1848, based in Adelaide. In the early 20th century it established a presence in schools by setting up a special category of savings accounts for schoolch ...

: established 1848 as a private institution, nationalised in 1945, merged into the State Bank of South Australia in 1984 **

State Bank of South Australia The State Bank of South Australia was a bank created in 1896 and owned by the Government of South Australia. The bank became the subject of a two-year South Australian Royal Commission upon its collapse in 1991. The surviving part of the bank ...

: established 1896, collapsed in 1991, subsequently privatised and rebranded as

BankSA BankSA, formerly known as the Bank of South Australia, the State Bank of South Australia and the Savings Bank of South Australia is the largest bank in South Australia. It is a subsidiary of Westpac. History The Savings Bank of South Austral ...

Tasmania Tasmania (; palawa kani: ''Lutruwita'') is an island States and territories of Australia, state of Australia. It is located to the south of the Mainland Australia, Australian mainland, and is separated from it by the Bass Strait. The sta ...

** State Savings Bank of Tasmania: established 1902, taken over by Commonwealth Bank in 1913 *

Victoria Victoria most commonly refers to: * Queen Victoria (1819–1901), Queen of the United Kingdom and Empress of India * Victoria (state), a state of Australia * Victoria, British Columbia, Canada, a provincial capital * Victoria, Seychelles, the capi ...

State Bank of Victoria The State Bank of Victoria was an Australian bank that existed from 1842 until 1990 when it was taken over by the Commonwealth Bank. It was owned by the Government of Victoria, State of Victoria. History A government-controlled savings bank had ...

: established 1842, collapsed in 1991 and sold to the Commonwealth Bank *

Western Australia Western Australia (WA) is the westernmost state of Australia. It is bounded by the Indian Ocean to the north and west, the Southern Ocean to the south, the Northern Territory to the north-east, and South Australia to the south-east. Western Aust ...

** Bank of Western Australia: established 1895, privatised and sold to Bank of Scotland in 1995, now owned by Commonwealth Bank trading as Bankwest ** State Savings Bank of Western Australia: established 1863, taken over by Commonwealth Bank in 1931

United States

In the United States, the terms "state-chartered bank" or "state-chartered savings bank" are used in contradistinction to " national bank" or "federal savings bank", which are technically chartered across all US states. A national bank must have "National" or "N.A." in its corporate name, a Federal Savings Bank must have "Federal" or "F.S.B." in its name, while a state chartered bank cannot have "National" or "Federal" in its name. All national banks and savings institutions are chartered and regulated by the Office of the Comptroller of the Currency. State banks are chartered and regulated by a state agency (often called the Department of Financial Institutions) in the state in which its headquarters are located. In addition, state banks that are members of the Federal Reserve are regulated by the Federal Reserve; state banks that are not members of the Federal Reserve are regulated by the Federal Deposit Insurance Corporation (FDIC). Therefore, virtually every state chartered bank has both a state and federal regulator. There are a very small number of state banks that do not have FDIC insurance.

Other countries

Usage of the term "state bank" varies in other countries. It is often a national bank of some type. In India, the State Bank of India is an Indian multinational public sector bank and financial services statutory body. It is a defined type of bank in India known as a Public sector banks in India, public sector bank, and the largest bank in India. It was founded as a private commercial bank, then nationalised by the Government of India, and the product of several mergers. Meanwhile, the State Bank of Vietnam is defined as an Ministry (government department), executive department under the Government of Vietnam, being the Vietnam, country's central bank that represents the government to manage functions of monetary, banking and foreign exchange operations as well as being the designated issuer of the Currency, national currency Vietnamese đồng, đồng.

References

{{DEFAULTSORT:State bank Banking Monetary reform Government-owned banks,

Australia

United States

Other countries

See also

References