What is required to open a commercial bank in the United States?

To open a commercial bank in the United States, obtaining a charter from either a state or federal government is essential. This charter serves as the legal authorization to operate as a commercial bank, indicating that the institution meets the necessary regulatory and legal requirements established by the relevant government authority.

The chartering process involves scrutiny of the bank's proposed business plan, financial projections, and overall compliance with banking laws, which is crucial for ensuring the stability and integrity of the banking system.

While other entities such as the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) do play roles in oversight and insurance, respectively, they do not issue the charter required to establish a bank. The requirement for a public offering of shares does not pertain to the process of opening a bank; rather, it may apply to banks looking to raise capital after they have established themselves.

In summary, a bank must secure a charter from the appropriate regulatory body, which grants the legal authority to operate and is a foundational step in the establishment of a commercial bank.