The core term "Veterans Day banking holiday" functions as a noun phrase, where "Veterans Day" serves as a proper noun adjectivally modifying the compound noun "banking holiday." In this compound noun, "banking" is a participle adjective specifying the type of "holiday" (a noun). Veterans Day is a federal holiday in the United States, and as a direct consequence, it is a recognized banking holiday.
The status of a banking holiday is determined by the operational calendar of the Federal Reserve System. Federal law designates Veterans Day, observed on November 11, as one of the official holidays for federal institutions. On this day, all Federal Reserve Banks are closed. This cessation of operations halts essential interbank services, including the processing of checks, Automated Clearing House (ACH) transactions, and wire transfers. Since commercial banks, credit unions, and other depository institutions depend on the Federal Reserve's infrastructure for clearing and settling payments, they also close their physical branches and suspend back-office operations.
The practical application for individuals and businesses is that financial transactions are not processed or settled on this day. Direct deposits, automatic bill payments, and check clearings scheduled for Veterans Day are delayed until the next business day. While customers can typically still access ATMs and perform basic functions through online or mobile platforms, such as viewing balances or making internal transfers, any transaction requiring interbank settlement is postponed. Therefore, it is crucial to account for this non-processing day when scheduling payments or anticipating incoming funds.
