Is it really true that a bank cannot be closed for more than 3 days? I've heard it for years, but have never seen it in a regulation. Can someone point me to a regulation or law that states the number of days a bank may be closed. Interested particularly due to inclement weather around a weekend or holiday.

There is no such specific law. The closure of banks on normal business days would be governed under the OCC regulations for National Banks or State law for State banks.

Some states used to have these Depression-era laws, but they've probably been repealed over the years.

Appropriately enough, this issue is discussed on Snopes. (Some commenters note they will ask their banker. Good luck with that.)

It may have been true some time after the depression, but I doubt that it has a basis in fact now.

Typically, if the bank has established a day as a normal business day, they would need permission from the OCC or State Banking agency to close on a non-holiday.

There is still at least 1 bank in a southern state that I'm aware of that is closed on a weekday as they open on a Saturday. Very strange in this day and age...

I know of a lot of banks in rural areas surronding our city that still close on Wednesday afternoon and are open on Saturday morning.

I know of a bank that is open Tuesday through Saturday in my surrounding area. (10 am until 2pm.) And they don't answer the phone after the doors close.

Randy, would you provide a regulatory cite, please?

Thanks for the cite, but it doesn't prohibit banks from closing at their own discretion.

So, as you stated in your original response, there isn't such a law.

Yes it does. A National Bank can only be closed on Legal Holiday's (as defined in that citation - Federal and State), unless an emergency condition exists. A National Bank cannot close on other days at their own discretion. The bank's Board of Directors is allows to set their own hours on those business days, but they must be open. State banks will have their own State law to deal with. That is why the OCC always issues advisories allowing National Bank to close in the case of natural disasters, such as floods and hurricanes.

Huh?

I know I can be a little dense and thick-headed when reading the regs with which I'm less familiar, but can you spell it out for me ('cause I just ain't seein' it)?


12 CFR §7.3000(a) specifies the BOD of National Banks should review and implement its own schedule of banking hours - "independently of any other bank" - meaning there is NO standard for required hours. Otherwise, why would each bank need to review/establish its own hours of operation? (This section says nothing about DAYS of operation.)

(b) addresses Emergency Closings, pursuant to 12 USC 95(b)(1) - which speaks to the OCC being able to designate ANY day as a legal holiday due to emergency conditions (et al), but still giving the banks the discretion to close or remain open on those days - and stipulates the OCC MAY declare a day a legal holiday IF emergency conditions exist. Again, this section still grants National Banks the option to "temporarily limit or suspend operations" OR alternatively, continue its operations UNLESS the OCC directs otherwise.

(c) references Ceremonial Closings, but still gives National Banks the ability to "choose to remain open or to close."

(d) discusses Liability and the fact that National Banks, upon choosing to close, should ensure all liabilities/obligations are met.


Where does the regulatory cite specify a "National Bank can only be closed on Legal Holidays...unless an emergency condition exists?"

If a "National Bank cannot close on other days at their own discretion," why does the law not simply state "National Banks must be open except on legal holidays, as recognized by the Federal Reserve System, or other days as designated by the OCC under emergency or ceremonial closings"?

Also, would you direct me to a site which would address Texas law?

If you have a National Bank charter, you can set your own hours. But you cannot just decide to close the day after Thanksgiving, unless that day falls under one of the exceptions. It is the price you pay for being a National Bank.

Twelve U.S.C. 95 clearly authorizes only the Comptroller, a state, or a state official to designate a day as a legal holiday for emergency reasons. Nonetheless, the OCC recognizes the practical concerns raised by the commenters. The ruling attempts to delineate certain emergency conditions under which the Comptroller will act to authorize the closing of bank offices. The OCC does not intend for 12 U.S.C. 95 or the ruling to preclude a bank from asserting defenses, such as impossibility of performance, if compelled to close due to circumstances beyond the bank’s control.

Are you a National Bank? If you are, Texas State law has no impact on you.

Well, first things first, I really don't mean to beat a dead horse (especially since this is really more of an academic exercise), but I truly want to understand.

Second, I guess I'm not reading as much into the regulatory citations as you are. I'm NOT seeing where 12 USC §95 specifies that ALL National Banks MUST be open every day that is NOT a legal holiday UNLESS the OCC (or State/State Official) declares an emergency condition which warrants a closing.

What I am seeing is, IN ADDITION to those days already deemed as legal holidays, the OCC has discretionary authority to declare other days as legal holidays based on the existence of an emergency condition, but nothing that negates a bank (national or otherwise) from setting their own hours...including which days they will be open to conduct business.

If 12 CFR §7.3000(a) permits a BOD the authority to review and establish their own hours, could they not stipulate zero (0) hours for the Friday and/or Saturday following Thanksgiving???

OR, is the title heading of 12 USC §95 indicative of something more (i.e. there are "limitations and restrictions" which preclude National Banks from closing EXCEPT ONLY under emergency conditions and declared legal holidays as determined by the OCC)? If so, where is that spelled out?

Third, we are a state-member Fed bank in Texas; so, yes, I'd be looking for the Texas statute(s). Please and thank you.

We can go back and forth for days on this. If you have any doubts about your own or any one else's opinions here, you can cut to the chase and just call your EIC or State regulatory body (if appropriate) and discuss.

I know we have rules here in Georgia...just sayin.

Randy, it's not that I have doubts about your (or anyone else's) opinions, I'm just struggling with understanding how you're deriving your conclusions. How are you interpreting the cites you referenced as requiring National Banks to be open at discretion of the OCC???

I'm genuinely asking for guidance (and, hoping not to get my regulator or EIC involved) and asking you to connect the dots.

I don't mean to be a nuisance or bothersome.

Joker, where are your GA rules located? Mabye I can find something similar here in TX.

Thanks.

Emergency closures are found here:

https://law.justia.com/codes/texas/2017/finance-code/title-3/subtitle-a/chapter-37/

FWIW, I finally received the following response from the TX DOB:

"...there are no federal or state statutes that require a bank to remain open on specific days nor have a maximum number of days that a bank can remain closed. They operate like any other private business."