A commercial bank is any financial institution that holds deposits for and lends money to individuals and businesses. In the United States, a national bank is a commercial bank that is a member of the Federal Reserve System. As such, a national bank is an investing member of its district Federal Reserve Bank.
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Any bank we go to when we need to open an account, withdraw cash or ask for a loan is a commercial, or retail, bank. The term commercial is used to distinguish these banks from other types, such as investment and merchant banks.
In the United States, when a bank is given national status, it means that it is chartered by the Office of the Comptroller of the Currency as a member of the Federal Reserve System. A national bank may facilitate the auction process of U.S. Treasury bonds and acts as an investing member of its district Federal Reserve Bank. A bank may be called "national" even if it operates locally.
National as Central Banks
In many other countries, the term "national" refers to central bank, which is a government-controlled bank in charge of the country's monetary policy. In the U.S., the central bank is called the Federal Reserve.