1. Copyright © Cengage Learning. All rights reserved The American Banking Industry Commercial bank –A profit-making organization that accepts deposits, makes loans, and provides related services to its customers –National bank: A commercial bank chartered by the U.S. Comptroller of the Currency –State bank: A commercial bank chartered by the banking authorities in the state in which it operates 18 | 1

2. Copyright © Cengage Learning. All rights reserved Seven Largest U.S. Banks 18 | 2 Source: The Fortune website, www.fortune.com, accessed September 30, 2008.

3. Copyright © Cengage Learning. All rights reserved The American Banking Industry (cont’d) Other financial institutions –Savings and loan associations (S&L) A financial institution that offers checking and savings accounts and certificates of deposit and that invests most of its assets in home-mortgage loans and other consumer loans –Credit unions A financial institution that accepts deposits from and lends money to only those people who are its members Members are usually employees of a particular firm, people in a particular profession, or those who live in a community served by a local credit union 18 | 3

4. Copyright © Cengage Learning. All rights reserved The American Banking Industry (cont’d) Other financial institutions (cont’d) –Mutual savings banks –Insurance companies –Pension funds –Brokerage firms –Finance companies –Investment banking firms 18 | 4

5. Copyright © Cengage Learning. All rights reserved Careers in Banking The 7 largest banks in the U.S. employ approx. 1,132,000 people The U.S. Department of Labor expects the number of people employed in banking to grow more slowly than other jobs in the economy between now and the year 2012. Traits of successful bankers –Honesty –Ability to interact with people –Strong background in accounting –Appreciation for the banking-finance relationship –Basic computer skills 18 | 5