National Bank

Definition

A national bank is a financial institution chartered and regulated by the federal government. In the context of US history, it refers to two banks established in the early 19th century, which were instrumental in managing the country's finances.

Related terms

Federal Reserve System: This is the central banking system of the United States today. It was created to provide a safer and more flexible monetary system.

Alexander Hamilton: He was one of America's founding fathers who proposed the idea of a national bank to handle debts from Revolutionary War and stabilize American economy.

Bank War: This refers to Andrew Jackson’s campaign against the Second Bank of United States due to his belief that it held too much power and could abuse its privileges.