Bank charter

Definition

A bank charter is an official document issued by a regulatory authority that grants permission to operate a bank. It outlines the rights and obligations of the bank, including what services it can provide and how it must comply with financial regulations.

Related terms

Regulatory Authority: An organization responsible for overseeing and enforcing laws and regulations within specific industries to ensure they operate legally and ethically.

Financial Regulation:

Rules and laws that govern financial institutions, aiming to maintain integrity in the financial system, protect consumers, and prevent financial crises.

Compliance:

The act of adhering to laws, regulations, guidelines, and specifications relevant to business operations, ensuring legal and ethical standards are met