Faculty Books
United States of America

United States of America



The banking and financial services industry is one of the largest segments of the US economy and operates in a highly complex regulatory framework at both the national and state level. The result is a dual banking system in which parallel state and federal banking systems coexist. Federal banks operate under federal charters and federal laws, while state banks operate under state charters and state laws. The two systems are, however, interrelated, and most state-chartered banks are subject to certain federal regulations, while federal banks are subject to certain ate laws. Commentators note that a benefit of the dual system is that state and national banks can innovate in the interest of customer service in spheres of different sizes, with state banks serving in a way as laboratories for new developments in bank powers, structures and consumer protection. One commentator states: “When state or national regulatory programs saw customers migrating from one charter to the other, regulators responded with measures enhancing the ability of banks to provide services that customers wanted. That is no small reason why so many innovations in bank services in the last century were developed by U.S. banks”. State law that conflicts with federal law is pre-empted under the US Constitution. Various uniform codes have been promulgated, such as the Uniform Commercial Code (UCC) and the Uniform Trust Code, as guidelines that states may adopt and modify, in an effort to promote consistency in fundamental areas of law. The restatements of law, such as the Restatement of Torts and the Restatement of Trusts; serve this function as well.



Publication Date



Hart Publishing


Oxford ; London


banking, financial, industry


Banking and Finance Law | Law

United States of America