Why can't banks be closed for more than 3 days straight?

Answer 1

This is a perpetuated myth; a fallacy.

There is NO federal law or regulation that requires financial institutions (FIs) to be open on certain days or that prohibits them from closing for a specified number of consecutive days.

"The Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. 102--242, 105 Stat. 2236) (FDICIA) was enacted on December 19, 1991. Section 228 of the FDICIA added a new section 42 to the Federal Deposit Insurance Act (12 U.S.C. 1831r--1) (FDI Act) that imposes notice requirements on insured depository institutions that intend to close branches."

This law, however, is specific to "branch" closings which might have significant, long-term impact on local communities. As such, FIs are required to notify their prudential regulators and provide sufficient analysis and substantiation for such permanent closings.

For those who might disagree, please provide a regulatory citation for your position.

Answer 2

It's a matter of accessibility. People need to be able to have access to their money.