Chapter 19
Types of Banking
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Commercial Banks
Saving and Loans Associations
Most banks in US are comercial banks. Usually large businesses that provide a wide range of services. Banks need charters or licenses to conduct businesses. They recieve charters to accept and transfer money and and to make loans from either federal or state governement. Chartered by federal government is called national bank. A bank chartered by state government is called a state bank.   Like commercial banks, savings and associations accept deposits and transfer and lend money. Mostly money comes from individuals and families than business. Make Make single-family and and multi-family loan, finance commercial mortgages, and auto loans. These institutions start when menbers of an assciation pool there money over a period of time. Interest rates slightly less than commercial banks. Often called "thrifts" or thrift institution
     
Savings Banks
Other Financial Institutions
Business for saving banks comes from saving accounts and home loan. Originally set up to service smaller saving customers the commercial banks ignored. Most loans are for home mortgages although some personal and auto. Interest rates are slighlt less than loans for commercial banks.   A kind of thrift institution is a credit union.Made up of individuals who work for a the same company or community organization,it can also offer savings accounts and make personal loans to members of a credit union. Life insurance companies, investment banking, mortgage comapnies, and trust companies offer individuals and businesses a variety of options and range of risks for managing money .