Which financial institution became the first central bank of the United States in 1791?

The First Bank of the United States became the country's first central bank in 1791.

Congress chartered the bank for a 20-year term after Treasury Secretary Alexander Hamilton argued that a national financial institution would help manage federal debt, collect taxes, and strengthen public credit. The bank was headquartered in Philadelphia and had branches in several cities.

It was a mixed public-private corporation: the federal government owned part of its stock, while private investors held the rest. Its supporters saw it as essential to financial stability, but opponents questioned whether the Constitution authorized Congress to create it.

The charter expired in 1811 and was not renewed. A Second Bank of the United States was later chartered in 1816. The Federal Reserve, created in 1913, eventually became the modern U.S. central banking system.