Chartering The owners must also obtain a bank charter . When deciding whether or not to charter a bank, the OCC must balance competitive interests against monopoly interests. When the OCC denies applications, it holds down competition, banks get lazy, costs rise, they raise prices to maintain profitability, lose customers, and fail. When the OCC approves applications, it promotes competition, banks cannot be lazy, they lower prices, compete too vigorously, and fail. The OCC has a great deal of discretion in its decisions, especially administrative decisions.
States have similar laws and similar requirements.
Closing a Bank Federal and state regulators may immediately close a bank if they believe that the bank is being operated in an unsafe and unsound manner. However, before the owners may close a bank, they must demonstrate to the banking authorities that local customers will have adequate access to other banking facilities.