wildcat banking

Wildcat banking refers to the practices of any unsound bank chartered under state law during the period of uncontrolled state banking (181663) in the United States. Wildcat banks distributed nearly worthless currency backed by questionable security (such as mortgages and bonds) and were located in inaccessible areas to discourage note redemption. These actions ended when note circulation by state banks was stopped after the passage of the National Bank Act of 1863.

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