Which bank was established in 1791 as the first central bank of the United States?

The First Bank of the United States was established in 1791 as the first central bank of the United States. Congress chartered it for a 20-year term after Treasury Secretary Alexander Hamilton argued that a national bank would strengthen public credit and federal finances.

The bank was headquartered in Philadelphia and had branches in several American cities. It accepted government deposits, issued banknotes, made loans, and helped regulate the currency by influencing other banks’ lending practices. The federal government owned part of its stock, while private investors owned the rest.

The charter expired in 1811 after political opposition prevented renewal. During the War of 1812, financial difficulties encouraged Congress to create the Second Bank of the United States in 1816. The modern Federal Reserve System, created in 1913, is separate from both earlier national banks.

The First Bank is therefore a historical predecessor of American central banking, not the institution currently responsible for US monetary policy.