2 Key Topics Powerful Forces Reshaping the Industry What Is a Bank? 1-2Key TopicsPowerful Forces Reshaping the IndustryWhat Is a Bank?The Financial System and Competing Financial-Service InstitutionsOld and New Services Offered to the PublicKey Trends Affecting All Financial-Service Firms
3 1-3The Different Kinds of Financial Service Firms Calling Themselves BanksCommercial BanksSavings BanksCooperative BanksMortgage BanksCommunity BanksMoney Center BanksInvestment BanksMerchant BanksInternational BanksWholesale BanksRetail BanksLimited Purpose BanksBankers’ BanksMinority BanksNational BanksState BanksInsured BanksMember BanksAffiliated BanksVirtual BanksFringe BanksUniversal Banks
4 The Financial Service Competitors of Banks 1-4The Financial Service Competitors of BanksSavings AssociationsCredit UnionsMoney Market FundsMutual Funds (Investment Companies)Hedge FundsSecurity Brokers and DealersInvestment BanksFinance CompaniesFinancial Holding CompaniesLife and Property-Casualty Insurance Companies
5 1-5Quick QuizWhat is a bank? How does a bank differ from most other financial-service providers?Under current U.S. federal law what must a corporation do to qualify and be regulated as a commercial bank?What is happening to banking’s share of the financial marketplace and why?
6 Traditional Services Offered By Banks 1-6Traditional Services Offered By BanksCarrying Out Currency ExchangeDiscounting Commercial Notes and Making Business LoansOffering Savings DepositsSafekeeping of ValuablesSupporting Government Activities with CreditOffering Checking AccountsOffering Trust Services
7 More Recent Services Offered by Banks 1-7More Recent Services Offered by BanksGranting Consumer LoansProviding Financial AdviceManaging CashOffering Equipment LeasingMaking Venture Capital LoansSelling Insurance PoliciesSelling Retirement Plans
8 Offering Security Brokerage and Investment Banking Services 1-8Offering Security Brokerage and Investment Banking ServicesUnderwriting SecuritiesOffering Mutual Funds and AnnuitiesOffering Merchant Banking ServicesOffering Risk Management and Hedging Services
9 Trends Affecting Banks and Other Financial Service Firms Today 1-9Trends Affecting Banks and Other Financial Service Firms TodayService ProliferationRising CompetitionGovernment DeregulationIncreased Interest Rate SensitivityTechnological Change and AutomationConsolidation and Geographic ExpansionE-Banking and E-CommerceConvergenceGlobalization
10 1-10Quick QuizWhy do banks and other financial intermediaries exist in modern society, according to the theory of finance?How have banking and the financial services market changed in recent years?What powerful forces are shaping financial markets and institutions today? Which of these forces do you think will continue into the future?
11 Web Links Federal Deposit Insurance Company www.fdic.gov 1-11Web LinksFederal Deposit Insurance CompanyFederal Financial Institutions Examination CouncilOffice of Thrift SupervisionCredit Union National AssociationMorningstar, Inc.Security and Exchange CommissionCareers in FinanceBank Job SearchBank Jobs