Banking Practice Showdown 2026 – Vault into Your Future Success!

The primary federal regulator of state banks that are not members of the Federal Reserve System is the Federal Deposit Insurance Corporation (FDIC). The FDIC's role includes ensuring the safety and soundness of state-chartered banks that are not part of the Federal Reserve system. It provides deposit insurance to protect depositors and conducts regular examinations and monitoring of these banks to promote stability in the financial system.

State banks that are not members of the Federal Reserve are regulated by the state in which they operate, but they also fall under the oversight of the FDIC to ensure they adhere to federal banking regulations, particularly concerning deposit insurance and risk management. This dual regulatory structure ensures a robust framework for the supervision of state banks while safeguarding the interests of depositors.

In contrast, the Office of the Comptroller of the Currency focuses on national banks and federal savings associations rather than state banks. The Office of Thrift Supervision was responsible for federal thrift institutions until it was dissolved, with its functions transferred to the OCC and the FDIC. The National Credit Union Administration solely regulates federal credit unions and does not extend its oversight to commercial banking.