National Bank Act

References

National Bank Act

United States [1863]

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Last updated

July 1, 2026

Quick Summary

The National Bank Act of 1863 established a system of federally chartered and supervised banks in the United States. This act aimed to create a stable, uniform national currency, backed by federal bonds deposited by each bank. It also set regulations for capital requirements, loan types, and reserves.

Prior to this act, the U.S. experienced a period of unstable state banking after the second Bank of the United States lost its charter in 1836. The Civil War highlighted the need for a more robust banking system and currency. While the 1863 act was a significant step, issues with currency inflexibility led to the creation of the Federal Reserve System in 1913. Today, national banks primarily function as commercial entities, with shared regulatory authority between the Federal Reserve and the Office of the Comptroller of the Currency.1

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wildcat bank
…after the passage of the National Bank Act of 1863, which provided for the incorporation of national banks under federal law and the issue of bank notes on the security of government bonds. The term wildcat bank was subsequently applied to any unstable bank.
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…after the passage of the National Bank Act of 1863, which provided for the incorporation of national banks under federal law and the issue of bank notes on the security of government bonds. The term wildcat bank was subsequently applied to any unstable bank.
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Hugh McCulloch
…(1863–65) he successfully implemented the National Bank Act of 1863, authorizing the issuance of national bank notes by national banks. As secretary of the Treasury (1865–69) under Presidents Abraham Lincoln and Andrew Johnson, McCulloch attempted to return the United States to the gold standard by withdrawing from circulation paper money…
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…(1863–65) he successfully implemented the National Bank Act of 1863, authorizing the issuance of national bank notes by national banks. As secretary of the Treasury (1865–69) under Presidents Abraham Lincoln and Andrew Johnson, McCulloch attempted to return the United States to the gold standard by withdrawing from circulation paper money…
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Office of the Comptroller of the Currency
…Act was superseded by the National Banking Act, which became law in June 1864 and authorized the OCC to hire a staff of national bank examiners to supervise banking institutions. The National Banking Act also gave the OCC authority to regulate lending and investment activities of national banks.
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…Act was superseded by the National Banking Act, which became law in June 1864 and authorized the OCC to hire a staff of national bank examiners to supervise banking institutions. The National Banking Act also gave the OCC authority to regulate lending and investment activities of national banks.
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national bank
The National Bank Act of 1863 provided for the federal charter and supervision of a system of banks known as national banks; they were to circulate a stable, uniform national currency secured by federal bonds deposited by each bank with the comptroller of the currency (often…
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The National Bank Act of 1863 provided for the federal charter and supervision of a system of banks known as national banks; they were to circulate a stable, uniform national currency secured by federal bonds deposited by each bank with the comptroller of the currency (often…
Read More