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 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: 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 The Bank of Scotland plc (Scottish Gaelic: ''Banca na h-Alba'') is a commercial bank, commercial and clearing (finance), clearing bank based in Edinburgh, Scotland, and is part of the Lloyds Banking Group. The bank was established by the Par ...

in 1995, now owned by Commonwealth Bank trading as

Bankwest Bankwest is an Australian bank based in Perth, Western Australia. It was founded as the Agricultural Bank of Western Australia in 1895 by the Government of Western Australia being renamed the Rural and Industries Bank in 1944, and Bankwest in ...

State Savings Bank of Western Australia State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...

: 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 Federal savings associations (also called "federal thrifts" or "federal Savings Banks"), in the United States, are institutions chartered by the Office of Thrift Supervision which is now administered by Office of the Comptroller of the Currency a ...

", 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 The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to corporate charter, charter, bank regulation ...

. 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 The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of ...

are regulated by the Federal Reserve; state banks that are not members of the Federal Reserve are regulated by the

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...

(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 State Bank of India (SBI) is an Indian Multinational corporation, multinational Public sector undertakings in India, public sector bank and financial service body headquartered in Mumbai. It is the largest bank in India with a 23% market shar ...

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 bank, and the largest bank in India. It was founded as a private commercial bank, then nationalised by the

Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...

, and the product of several mergers. Meanwhile, the

State Bank of Vietnam The State Bank of Vietnam (SBV; ) is the central bank of Vietnam. Organized as a Ministry (government department), ministry-level body under the Government of Vietnam, it is the sole issuer of the national currency, the Vietnamese đồng. As o ...

is defined as an

executive department The executive branch is the part of government which executes or enforces the law. Function The scope of executive power varies greatly depending on the political context in which it emerges, and it can change over time in a given country. In ...

under the

Government of Vietnam The Government of the Socialist Republic of Vietnam (; less formally the Vietnamese Government or the Government of Vietnam, ) is the Cabinet (government), cabinet and the central Executive (government), executive arm of the Politics of Vietn ...

, being the

country A country is a distinct part of the world, such as a state, nation, or other political entity. When referring to a specific polity, the term "country" may refer to a sovereign state, state with limited recognition, constituent 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

national currency Fiat money is a type of government-issued currency that is not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Fiat currency is typically designated by the issuing government to be legal tender, ...

đồng.

References

{{DEFAULTSORT:State bank Banking Monetary reform

Australia

United States

Other countries

See also

References