|dc.contributor.author||Price, Geoffrey L.||
|dc.description||viii, 144 p.||en_US
The procedures involved in the opening of a national bank are
manifold. At the base is the application for permission to
establish the proposed bank. It is in this application that the
organizers of the proposed bank must demonstrate to the Office
of the Comptroller of the Currency of the U.S. Treasury
Department, the demand, opportunity, and other rationale
behind the formation of a national bank.
1.2 Business Description
The Comptroller of the Currency (OCC) requires that banks
applying for a national charter delineate the community which
it will serve and list the types of services it will offer. An
important part of this requirement is the Community
Reinvestment Act Statement. This aids the OCC in determining
the credit needs of the community to be served.
1.3 Leadership and Management
Sound and competent management is crucial to the success of a
new bank. The selection of a qualified president/chief
executive officer, board of directors, cashier, and loan officer
are marked decisions to be considered with extreme care.
1.4 Plans and Objectives
Anticipated market growth and asset/liability structure of the
proposed bank play large roles in the OCC' s decision regarding
the issuance of a national charter. Conservative projections
typify most proposed bank's plans and objectives.
1.5 Capitalization/Net Worth Plan
Initial capitalization level of a proposed bank is determined by
the OCC, judging from the area's market conditions, future
prospects, and the operating plans of the organizers. The actual
capital raising process is left to the discretion of the organizers,
but must be detailed in the application for a charter.
1.6 Analysis of Market Area
Analyzing the economic characteristics of the community to be
served is mandatory in order to determine the area's ability
to support a local, national bank. Such characteristics generally
include population, employment, construction, retail-trade, and
1.7 Analysis of Competition
By demonstrating to the OCC the economic state of the area's
other financial institutions, they (the OCC) are better able to
make a judgement concerning the entrance of another
competitor into the marketplace.
1.8 Market Strategies
The OCC requires that the organizers of a proposed national
bank detail their strategies for becoming competitive in their
marketplace. Advertising, director and founder involvement in
the bank and community, and extension of services all may
play roles in the proposed bank's plan.
After satisfying all of the conditions required by the OCC, a
national charter may be issued. The time to realize what was
once only down on paper has arrived.||en_US
|dc.description.sponsorship||Goleta National Bank. Goleta, California.||
|dc.relation.ispartof||Kalamazoo College Economics and Business Senior Individualized Projects Collection||
|dc.relation.ispartofseries||Senior Individualized Projects. Economics and Business.;||
|dc.rights||U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.||
|dc.title||The Formation of a National Bank: Goleta National Bank||en_US
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