This guide provides an overview of the national banking system, its regulation, and the Office of the Comptroller of the Currency (OCC). Specifically, it:

• Provides background on the national banking system.
• Provides an overview of the OCC’s organization, including its mission, structure, and staff.
• Discusses the value and approach of OCC supervision.
• Outlines the OCC’s corporate application process and discusses permissible banking activities for national banks.
• Discusses the OCC’s supervision philosophy and its examination process.
• Shows how the OCC uses checks and balances to ensure equitable, quality supervision.
• Includes OCC contacts, additional OCC publications, and other resources.

Table of Contents:

Introduction . . . . . . . . . .  . . . . . . . . . . . . . . . 1

Creation of the National Banking System . . . . . . . . . . . . . . . 3
The System Today . . . . . . . . . . . . . . . . . . . . . 3
The OCC Today . . . . . . . . .. . . . . . . . . . . . . 3

The OCC . . ..5

Organization . . . . . . . . . . . . . .  . . . . . . . . . 5
Lines of Supervision . . . . . . . . . . . .  . . . . . . . . . . . 6
Bank Supervision Staff . . . . . . . . . . . .. . . . . . 6
Effective Use of Technology . . . . . . . . .. . . . . . 7
OCC Staff Expertise . . . . . . . . . . . . . . . . . . . . 8
The OCC's Outreach Program . . . . . . . . . . . 8
Communications . . . . . . . . . . . . .. . . . . . . . 9
Assessments and Fees . . . . . . . .. . . . . . . 10

The National Bank Charter . . . . . . .  . . . . . 11
The OCC's Licensing Process . . . . . . . . . . . .. . . . 11
Entry into the National Banking System . . . .. . . . . 12
Establish a New National Bank . . . . . . . .  . . . . . 12
Convert an Existing Institution to a National Bank . . . . . .. . . 13
Permissible National Bank Activities . . . . . . . . . 13
Operating Subsidiary . . . . . . . . . . .  . . . . . 14
Financial Subsidiary . . . . . . . . .  . . . 14
Bank Service Company . . . . . . .. . . 14
Other Equity Investment . . . . . . . . . 14

Supervision and Oversight . . . . . . . . . 17
Overview . . . . . . . . . . . . . . . . . . 17
Supervision by Risk . . . . . . . . . . . . . . . . . . . 17
Risk Assessments . . . . . . . . . . . . . . . . . . . . 18
Ratings . . . . . . . . . . . . . . . . . . . . . 18
Specialized Area Supervision . . . .. . . . 18

Checks and Balances . . . . . . . .. . . . . . 21
The Ombudsman . . . . . . . . . . .. . . . . . 21
National Bank Appeals Process . . . . . . . . . . . . . 21
Bank Examination Questionnaire . . . . . . 21
Customer Assistance Group . . . . . . . . . . . . 21
Program and Management Accountability . . . . . 22

Appendixes . . . . . . . . . . . . . . . . . 23
A. OCC Locations . . . . . . . . . . . 23
B. OCC Contacts . . . . . . . . . . . . . . 24
C. OCC Publications . . . . . . . .  . . 29

Download A Guide to the National Banking System

PDF format, 630KB, 38Pages.

This guide, prepared by the Office of the Comptroller of the Currency (OCC), is intended to provide an overview of the national banking system, its regulatory structure, and entrance into it. The OCC encourages organizing groups, financial institutions not currently regulated by the OCC, and national banks to consult with appropriate OCC contacts or counsel familiar with banking law to obtain advice on specific issues.

Creation of the National Banking System

The national banking system was conceived by President Abraham Lincoln and Treasury Secretary Salmon P. Chase to revive the national economy and promote a uniform system of currency and credit. The National Currency Act (Act), which created the national banking system, was enacted in 1863. Provisions of that act were reenacted and clarified by the National Bank Act a year later, in 1864. The opening in Philadelphia of the first bank chartered under the new system presented the United States with a fresh means to promote a sense of nationhood based on uniformly regulated financial institutions and a growing economy. The issuance of ”national bank notes” by national banks alleviated a serious obstacle to interstate commerce that existed before the Civil War.

Under the direction of the Comptroller of the Currency, the national banking system acquired a reputation for safety and soundness that inspired confidence from the banking public.

The System Today

Today the national banking system consists of around 2,000 national banks, their branches, and other facilities located throughout the United States and in many countries around the world. Although national banks are no longer involved in creating paper currency, they continue to play a critical role in creating and distributing the nation’s wealth, to ensure a healthy, growing economy.

The OCC Today

The OCC’s mission is to charter national banks, to oversee a nationwide system of banking institutions, and to assure that national banks are safe and sound, competitive and profitable, and capable of serving in the best possible manner the banking needs of their customers. The OCC’s mission ensures a robust and financially sound national banking system in which national banks soundly manage their risks, comply with applicable laws, compete effectively with other providers of financial services, offer products and services that meet the needs of customers, and provide fair access to financial services and fair treatment of their customers.

For more than 140 years, the OCC has been a leader in examining national banks, evaluating industry trends, identifying emerging banking issues, and, through the supervisory process, assisting national banks to meet the challenges of today’s fast-changing financial markets.

Throughout its history, the OCC has sought to provide the highest quality bank supervision. The OCC’s approach to bank supervision has evolved in response to the experiences of many years. It is based on a judicious combination of on- and off-site activity conducted by locally based examiners and front-line supervisors who know the communities where national banks operate. It is backed by the strength and depth of a national organization of professionals dedicated to the interests of a safe, sound, fair, and competitive banking system. The OCC maintains a high-quality, professional staff of bank examiners, risk specialists, economists, and attorneys to ensure quality bank supervision.

The OCC also ensures that supervision is fair and balanced. The OCC’s Office of the Ombudsman serves a key role in making the OCC more accessible to the banking industry and its customers. The Ombudsman provides bankers with an avenue to discuss problems in confidence, explore options, and seek advice. The OCC’s Customer Assistance Group, part of the agency’s Office of the Ombudsman, was created to assist consumers in resolving complaints about national banks, offer guidance, and answer questions.

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