Types of Financial Institutions Flashcards
what are the various types of banks?
central banks
retail banks
commercial banks
investment banks
central banks?
oversee and maange all the banks in their respective country and set monetary policy
e.g., federal reserve, bank of england, bank of…. etc
retail banks?
provide products & services to individual consumers
e.g., checking/savings accounts, consumer loans, mortgage loans
commercial banks?
work with businesses to serve their financial needs
e.g., trade finance, forex etc
investment banks?
operate in the capital markets to help clients raise capital through underwriting and issuance of securities
usually help clients buy & sell securities or provide research analysis
clients tend to be large corporations/institutional investors
underwriting?
the process where a bank raises capital for a client from investors either via debt or equity financing
familiar types of financial institutions?
- universal banks
- large banks
- investment banks
- community banks
- online banks
- credit unions
- building societies
- savings & loans associations
universal bank?
contains every type of banking service
full service bank
offers retail, commercial and investment banking under one financial institution
examples of universal banks?
Citigroup
HSBC group
deutsche bank
large banks?
similar to universal banks
don’t offer investment banking services
focus on retail & commercial banking
examples of larg banks?
lloyds bank
banco santander
bank of america
wells fargo
investment banks?
focused on access to capital markets
focused on helping clients raise funds
examples of investment banks
goldman sachs
barclays
credit suisse
community banks?
tend to focus on individual consumers or small companies
most common in the US
online/digital banks?
similar to retail banks
offer similar products/services but through online platforms
credit unions?
similar to community banks
however credit unions server specific demographics and are member owned
clients who are members must hold shares in the credit union
building societies?
operate similarly to credit unions
founded in UK and australia
often offer mortgages
examples of building societies?
nationwide building society (based in UK)
savings & loans associations?
similar to building societies
predominantly in the US
AKA thrifts
private banking?
a subset of retail banking that caters to high-net-worth individuals
business banking?
banking services provided to small businesses
commercial banking?
larger scale than business banking and serves clients with complex needs
corporate banking?
serves those whose needs are even more complex than commercial banking
