Federal Reserve Holidays & State Banks

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Question:

Why is the Federal Reserve holiday schedule applicable to state banks? Can a bank stay open on one of those holidays if it desires?

Answer:

A state-chartered bank can be open for business on any day that state law permits it to be open. In practice, however, many banks follow the Fed's schedule, particularly if they use the Fed for check clearing and presentment.

First published on BankersOnline.com 12/07/09