Who regulates state banks in the United States?

State banks in the United States are primarily regulated by their respective state agencies. This means that each state has its own banking regulatory body responsible for overseeing the operations and compliance of state-chartered banks. In addition to state regulation, if a state bank is a member of the Federal Reserve System, it will also be subject to the regulations and supervision of the Federal Reserve (often referred to as the FED). This dual system of regulation helps ensure that state banks operate safely and effectively while adhering to both state and federal laws.

Other regulatory bodies, such as the Comptroller of the Currency, primarily oversee national banks rather than state banks and are not involved in the dual regulation that applies specifically to state-chartered institutions. The SEC is focused on securities and does not regulate banking institutions, reinforcing that the accurate response must encompass the state and federal framework that governs state banks.