A national bank is a type of bank that is chartered by the federal government. The purpose of a national bank is to provide financial services to individuals and businesses in the local community. National banks are regulated by the Office of the Comptroller of the Currency, which is part of the United States Treasury Department. They are also required to maintain a higher reserve requirement than state banks. They are allowed to offer checking and savings accounts, as well as other basic banking services. However, they are not allowed to offer investment products, such as stocks and bonds. The main advantages of national banks are that they are backed by the full faith and credit of the United States government and that they have a wide network of branches and ATM locations. The main disadvantage of national banks is that they are subject to stricter regulation than other types of banks.
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