State Chartered Bank & Trust Company Overview

State-Chartered Banks

There are four types of financial institutions allowed to operate in Nebraska. Those are: commercial banks; credit unions; savings banks or savings & loans; and trust companies. Each of these industries operate under a dual system - a national system and a state system. Our agency, the Nebraska Department of Banking and Finance, regulates the state-chartered industries in Nebraska through its Financial Institutions division. This section of our web site is dedicated to commercial banks and trusts. Please visit the credit unions and savings & loan section for more information on those industries.

Nebraska state-chartered financial institutions may have branches within and outside the state. Accounts in all Nebraska state-chartered banks are insured by the Federal Deposit Insurance Corporation (FDIC). Our agency's Financial Institutions Division works closely with the FDIC and other regulators to promote sound banking practices by identifying, monitoring and addressing risks.

Our agency does not regulate national financial institutions in Nebraska. These institutions operate under a national or federal charter rather than a state charter. National banks are regulated by the Office of the Comptroller of the Currency (OCC), and are often identified by the words "National" or "National Association" or "N.A." in the name. Federal credit unions also have "Federal" in their name and should be identified as a credit union. They are regulated by the National Credit Union Association (NCUA).

Links to these various regulators are provided in the Links section.


Trust Departments and Companies

A trust business is one that can establish, maintain and execute trusts. It may also perform other fiduciary activities, such as acting as custodian or guardian.

Many banks have trust departments that are subject to compliance with state trust laws. Our agency regulates trust departments of state banks. Trust departments of national banks must file pledged securities with our agency, but regulation of these departments fall under the jurisdiction of the bank's federal regulator.

Trust businesses not affiliated with a bank are called trust companies. Our agency charters and regulates trust companies within the State of Nebraska. Trust companies may have branches, but cannot offer insured deposits.