Bank Charter
/ˈbæŋk ˈtʃɑːrtər/
Definitions
- (n.) A government-issued license that authorizes a financial institution to operate as a bank.
The bank charter must be granted before the institution can begin accepting deposits.
- (n.) A formal document detailing the rights, privileges, and obligations of a bank granted by a sovereign or regulatory authority.
The bank charter outlines the regulatory compliance requirements the bank must follow.
Forms
- bank charter
- bank charters
Related terms
See also
Commentary
A bank charter is foundational for legal operation of banks and varies by jurisdiction; drafters should ensure clarity on the regulatory scope and duration.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.