The Banking System and Financial Institutions : The Banking System and Financial Institutions Personal Finance Banks and Other Deposit-Type Institutions : Banks and Other Deposit-Type Institutions Commercial Banks
Savings and Loans Associations
Mutual Savings Banks
Credit Unions Commercial Banks : Commercial Banks Full-service Banks
Offer checking accounts, savings accounts
Make loans to individuals, businesses, and the governments.
Welcome to BLCnet.com - Homepage FDIC : FDIC Protects depositors’ money in case of failure of a bank.
Insures all accounts up to $100,000
Almost 99% of banks are FDIC members Savings and Loans Associations : Savings and Loans Associations Specialize in savings accounts and loans for home mortgages.
Many have expanded their services to include many services provided by commercial banks.
Slovenian Savings & Loan - Savings Accounts
East Boston Savings Bank-Statement Savings Mutual Savings Bank : Mutual Savings Bank Provides a variety of services.
Organized primarily for savings accounts and home mortgages.
Owned by the depositors.
Profits go to the depositors.
Many have been converted to stock companies.
About Mutual Savings Bank Credit Unions : Credit Unions User-owned, not-for-profit
Formed by people from the same company, government agency, labor union, church, profession of community.
http://www.bankrate.com/brm/news/dollardiva/20001206c.asp Non-deposit Financial Institutions : Non-deposit Financial Institutions Life Insurance Companies
Consumer Finance Companies
Pawnshops Life Insurance Companies : Life Insurance Companies Provides financial security for dependents
Many life insurance companies provide financial services such as investments. Investment Companies : Investment Companies Allow people to choose investment opportunities for long-term growth of their money
Permit people to invest in the market through mutual funds for retirement. Consumer Finance Companies : Consumer Finance Companies Specializes in consumer loans for cars, large appliances, furniture and financial emergencies.
Interest rates are usually higher than banks and credit unions. Mortgage Companies : Mortgage Companies Provide loans for purchasing a home or other real estate.
Mortgage—a loan made to purchase real estate. Check-Cashing Outlets : Check-Cashing Outlets Used by people who do not have bank accounts.
Offer other services such as money orders, private postal boxes, utility bill payment, and sale of bus and subway tokens.
Charges range from 3%-10% of the face value of the check.
The High Cost of Poverty: Fringe Banking Pawn Shops : Pawn Shops Make loans based on the value of property such as jewelry, electronics, or other valuable items.
Charge much higher fees than other lending institutions. Types of Financial Services : Types of Financial Services Accepting deposits
Providing financial advice and investment services.
Managing Trusts Federal Reserve System (Fed) : Federal Reserve System (Fed) Established to supervise and regulate member banks
All national banks are required to join the Federal Reserve System
Banks that join the system are called “member banks”
The U.S. is divided into 12 Federal Reserve districts. The Four “Hats” (functions) of the Federal Reserve : The Four “Hats” (functions) of the Federal Reserve Slide 18: A Bank for Banks Cashes checks for banks
Collects (clears) checks for banks
Wires money (EFT’s for banks)
Provides checking accounts for banks
Makes loans to banks Slide 19: Supervises Banks Supervise all national banks
Supervises other members of the system Slide 20: U.S. Government's Bank Provides a checking account for the U.S. Government
Handles the huge U.S. Debt Slide 21: Managing Money Raises and lowers interest rates
Attempts to control inflation