Types of Financial Institutions Flashcards

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What are depository financial institutions?

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Organizations which accept deposits and provide loans, using deposits to provide personal and commercial loans. They include commercial banks, retail banks, credit unions, and savings and loan associations.

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What is the main function of commercial banks?

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Receiving, transferring, and lending money to individuals, businesses, and government. They offer services like issuing money in various forms and creating credit.

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What services might commercial banks offer to large corporations?

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Foreign trade services, credit card processing, and merchant services.

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How are commercial banks owned and controlled?

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They are for-profit organizations owned and controlled by investors, with customers having no say in operations.

Front

Name some examples of commercial banks.

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JP Morgan Chase™, Wells Fargo®, Bank of America®.

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What services do retail banks provide?

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A wide variety of financial services for individuals, families, and small businesses, including checking and savings accounts, mortgages, credit cards, and auto loans.

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Do retail banks deal with large corporations?

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No, they do not deal with large corporations and financial institutions.

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How are retail banks owned?

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They are owned by shareholders and operate for a profit.

Front

Name some examples of retail banks.

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Woodforest National Bank®, Veritex Community Bank®, Simmons Bank®.

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What services do credit unions offer?

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Many of the same services as banks, including checking and savings accounts, debit and credit cards, mortgage and auto loans, and lines of credit.