Definition

1. Noun:
   • A formal document granting permission to operate a financial institution: A "bank charter" is an official document, issued by a government or regulatory authority, that grants a company the legal right to operate as a bank. It defines the bank's powers, structure, and the regulations it must follow.

Usage Examples

• Noun:
  • The new financial company applied for a bank charter from the federal government.
  • Without a valid bank charter, an institution cannot accept deposits from the public.
  • The state's bank charter imposed strict capital requirements.

Advanced Usage

• "to obtain/secure a bank charter": The process of receiving official approval and documentation to operate a bank.
  • The fintech startup spent two years trying to secure a bank charter.
• "chartered bank": A bank that operates under the authority of a bank charter.
  • As a chartered bank, it is subject to regular federal inspections.

Variants and Related Words

• Charter (n): A written grant of rights or privileges from a sovereign or legislature.
  • The city's charter dates back to the 18th century.
• National Bank Charter: A charter issued by the federal government (e.g., the Office of the Comptroller of the Currency in the U.S.).
• State Bank Charter: A charter issued by a state government.

Synonyms

• Banking license: An official permit to conduct banking business.
• Articles of incorporation (for a bank): The legal documents that create a bank corporation, often closely associated with its charter.

Related Phrases

• "to operate under a charter": To function according to the rules and permissions granted by a charter.
  • The institution operates under a federal bank charter.

Noun

1. a charter authorizing the operation of a bank