National Bank

A national bank can be defined in various ways. In case of developing countries, a national bank typically refers to a bank, which is a state-owned bank. It also means a general commercial bank or private bank, which carries out its functions all over the country.
This is in opposition to local or regional or global banking operations.Previously, the expression ‘national bank’ was utilized simultaneously with the term ‘central bank’. However, this is no more implemented according to that context at the present time. The names of few central banks might carry the words ‘national bank’; reversely, if the name of a bank is adopted in that manner, it is readily not regarded as a central bank.

Examples of this kind of banks are National Bank of Canada, which is located in Montreal and National Bank AG located in Essen, Germany, which is a commercial bank with private ownership.

Contrarily, the National Bank of Cambodia is the apex bank of Cambodia and the apex or main bank of Ethiopia is the National Bank of Ethiopia.

National Bank of Colombia
The Bank of the Republic of Colombia is the national bank of Colombia. The principal objective of this bank is to regulate the money flow within and away from the country and the issuance of the official currency of Colombia, which is the peso.
National Banks of Australia
By the passing of an Australian Act of Parliament, the Commonwealth Bank of Australia was incorporated in the year 1911. The policy behind its incorporation was bank nationalization. This policy was implemented by the labor government in Australia, which was led by the then prime minister, Andrew Fisher. This bank was the earliest bank in Australia to obtain a guarantee from the Federal Government. In the decade of 1960s, there was a split in the bank, and the functions of the reserve bank were handed over to the Reserve Bank of Australia and the ordinary banking operations were handed over to the Commonwealth Banking Corporation.

Privatization of the Commonwealth Bank was accomplished in the decade of 90s. At that time, the prime minister of the labor government was Paul John Keating. Currently, Commonwealth Bank ranks as the second biggest bank in the Australian Commonwealth behind the National Australia Bank.
National Bank of India
NABARD or the National Bank for Rural and Agricultural Development was incorporated in the year 1982. The principal objective behind its establishment is to enforce the National Bank for Rural and Agricultural Development Act 1981. It substituted the Rural Planning and Credit Cell or RPCC and Agricultural Credit Department or ACD of the Reserve Bank of India, as well as ARDC or the Agricultural Refinance and Development Corporation.

The refinancing facilities of NABARD are available to the following entities:

State Co-operative Banks or SCBs
State Co-operative Agriculture and Rural Development Banks or SCARDBs
Commercial Banks or CBs
Regional Rural Banks or RRBs
Other financial services providers sanctioned by RBI


However, the final recipients of benefits of investment credit provided by NABARD are the following:

Partnership organizations
State-owned co-operative societies or corporations
The production credit is commonly offered to individuals.

The operations of NABARD are carried out with the help of its regional offices, sub-offices, as well as district offices all over India.
National Bank of New Zealand
At present, there is only one state-owned bank in New Zealand and that is Kiwibank, which has been formed by the coalition government (Labor-Alliance).

The National Bank of New Zealand is a private banking institution that was taken over by ANZ from its erstwhile proprietor, Lloyds TSB in the year 2003.

National Bank of Serbia
The apex bank of Serbia is the National Bank of Serbia, which is a state-owned bank and controls the official currency of Serbia, the Serbian Dinar.
National Bank of Pakistan
The National Bank of Pakistan is one of the principal banks in Pakistan.
National Banks of the United States
In the U.S., the expression ‘national bank’ previously denoted the Bank of North America, First Bank of the United States, and the Second Bank of the United States. Nevertheless, each and every one is no longer in existence. In contemporary United States, the expression ‘national bank’ refers to a bank, which has the official charter of the Office of the Comptroller of the Currency or OCC, which is an agency under the Treasury Department of the United States in conformance to the National Bank Act. As per this act, the term national or national association has to be included in the names of banks as N.A. The deposits of the national banks in the U.S. are insured by FDIC or the Federal Deposit Insurance Corporation.

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Last Updated on : 1st July 2013

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