National Banks and The Dual Banking System
September 2003
Today, the dual banking system, which has been a hallmark of banking in the United States for nearly 200 years, is under attack, as many states have attempted to assert legislative and enforcement authority over national banks in a way that contradicts constitutional principles that have been well-settled since the early nineteenth century.
This paper explains the history and features of the “dual banking system” and discusses the judicial and legislative precedents establishing the constitutional limits on the ability of states to control or direct national bank powers conferred under federal law.
