1. Wednesday, November 11, 2015
Objective: Students will be able to examine the roles of financial institutions and their impact on everyday Americans. Purpose: You will or already have your own bank account and will need to know what services are available through banks.

2. Banks Bank: A financial institution licensed as a receiver of deposits
Two types: Commercial Banks and Investment Banks
Banks are heavily regulated by the government
Why do you think this is the case?

3. Commercial Banks

4. Commercial Banks
Main Responsibilities: managing withdrawals and deposits
Also supply short-term loans to individuals and small businesses
Help customers manage day-to-day transactions
Purpose for consumers: Use for basic checking and savings accounts, certificates of deposit and sometimes for home mortgages

5. Offshore Banks
Offshore Bank: a bank located outside the country of residence of the depositor
Advantages: greater privacy, easy access to deposits, generally higher interest rates
Disadvantages: Limited access, less secure due to different regulations

6. Impact of Bank Size Large Banks Small-Bank Networks
“Big Four” banks: Chase, Citibank, Wells Fargo, Bank of America
Advantages: many convenient branch and ATM locations
Disadvantages: higher fees and impersonal nature
Small-Bank Networks
Advantage: more personalized
Disadvantages: only regional or local service, fewer ATMs
Examples: US Bank, PNC, BB&T

7. Credit Unions vs. Banks
Fees and loan rates at credit unions are generally lower and less numerous
Savings account interest rates are generally higher than banks
In order to join a credit union, potential members must be part of a field of membership, which is typically based on one’s employment, community, or membership in an association or organization