Brex Learning Center


National Bank

A national bank is a commercial bank subject to the supervision of the Comptroller of the Currency of the U.S. Treasury. The institution must have "national" or "national association" in its name. They function as a member bank of the Federal Reserve in the capacity of an investing member of its district Federal Reserve Bank, for which they facilitate daily transactions. It is essential that a national bank is a member of the Federal Deposit Insurance Corporation (FDIC), and they may facilitate the auction process of U.S. Treasury bonds. Internationally, a national bank may be known as a central bank. National governments control the central banks, which set monetary policies within that nation's economy.