State-chartered banks are financial institutions required to belong to the federal reserve system.
Each and every bank with a national charter owns shares in a Federal Reserve Bank. State chartered banks that meet specific requirements may elect to become members (and hold equity in their regional Federal Reserve bank).
The fundamental financial intermediary services offered by chartered banks are crucial in the modern economy. People can simply deposit money into different kinds of accounts with a chartered bank to receive interest on their short-term savings.
Chartered banks lend out the majority of their deposits to private borrowers and business borrowers to promote economic growth, while still maintaining a float of currency to handle everyday consumer transactions.
To know more about Chartered banks, click here:
https://brainly.com/question/14317291?referrer=searchResults
#SPJ4
