There are three main types of financial institutions in the US Today: Commercial banks Savings and Loans Credit Unions
Initially established to provide loans to businesses. **The Banking Act of 1933 created a distinction between commercial and investment banks, but deregulation in the 1980s and 90s did away with that distinction. ▪ Deregulation also led to a wave of mergers, reducing the number of banks from 12,000 in 1990 to 7,500 in 2005. The Federal Deposit Insurance Company (FDIC - established in 1933 to insure banks) insures all commercial banks based in the US.
How much banks are required to keep “in reserve”; Set by the Federal Reserve Board (more later)
Savings and Loans They began in the 1830s as a way for people to pool their savings in a safe place to earn interest and a source of financing for families who wanted to buy homes.
Cooperative savings and lending institutions that offer services similar to commercial banks, such as savings and checking accounts. But most credit unions specialize in mortgages and auto loans. **Most credit unions have deposit insurance through the NCUA, and organization similar to the FDIC. The major difference between credit unions and other institutions is that credit unions have membership requirements. To become a member, a person must work for a particular company, belong to a particular organization, or be a part of a particular community affiliated with the credit unions.
Members of the US Navy Employees of Ford Members of Unions Teachers in Spokane, WA
Banks provide 3 main services: Customers can store money in accounts or store valuables in safe deposit boxes. Customers can earn money by earning interest on accounts or making investments through the bank. Customers can borrow money using a home mortgage, auto loan, credit card, etc.