Financial Institutions

you hello and welcome I would like to explain to you the different types of financial institutions what they are how they work and who they might be for financial institutions offer a variety of services to individual consumers as well as businesses these services include deposit products loans and investments let's take a look shall we the largest type of bank is the central bank in the United States the central bank is called the Federal Reserve the Federal Reserve Bank supervises and regulates the other smaller financial institutions it does not interface with consumers it is a bank for the other banks the types of smaller banks include retail and consumer banks credit unions as well as Savings and Loan associations let's look at consumer banks next retail banks traditionally were for consumers while commercial banks worked with businesses your large banks today typically offer services to both these services include deposit accounts like checking in savings accounts as well as personal and residential loans you can even find these types of services in online banks now that's new credit unions are typically smaller institutions who serve a specific demographic such as a region or a profession credit unions are typically not-for-profit and so they can often compete with larger banks in terms of interest rates and technology this is because the members of a credit union are the main shareholders Savings and Loan institutions are sort of hybrids between credit unions and banks they can be owned by either their members or a group of shareholders savings and loans are allowed to invest up to 20% of their assets in commercial loans but they are mostly known for their residential mortgage products there are other specialized financial companies out there such as investment banks and brokerage firms which buy sell and manage securities and stocks for their customers other financial companies include mortgage only companies and insurance companies which helps protect its customers from financial loss due to accidents emergencies or death this has been a brief and broad overview of financial institutions in the following videos we will take a closer look at the products and services mentioned briefly here thanks for stopping by

Channel: Andrew Davis

Views: 15,062

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Id: yv73io7b5VA

Length: 2min 44sec (164 seconds)

Published: Sun Aug 13 2017