How are Internet banks regulated?
The way an Internet bank is regulated depends in large part on the type of institution it is. Some Internet banks are Internet sites on which customers of bricks-and-mortar depository institutions can access transaction services. Other Internet banks operate only through the Internet (Internet-only). The Federal Deposit Insurance Corporation (FDIC) monitors both types of institutions. Internet banks that qualify as thrift institutions may be regulated by the Office of Thrift Supervision (OTS). Those that are considered national banks are regulated by the Office of the Comptroller of the Currency (OCC). The FDIC’s Institution Directory lists which federal agency is the primary regulator for specific banks, including Internet banks.
The way an “Internet bank” is regulated depends in large part on the type of institution it is. Some Internet banks are Internet sites on which customers of “bricks-and-mortar” depository institutions can access transaction services. Other Internet banks operate only through the Internet (“Internet- only”).The Federal Deposit Insurance Corporation (FDIC) monitors both types of institutions. Internet banks that qualify as thrift institutions may be regulated by the Office of Thrift Supervision (OTS). Those that are considered national banks are regulated by the Office of the Comptroller of the Currency (OCC). The FDIC’s Institution Directory lists which federal agency is the primary regulator for specific banks, including Internet banks.
