Info-Authority: Banks

A bank is a financial safe-house that essentially allows its users to borrow or store money. U.S. banks are categorized into commercial banks, savings and loan associations, savings banks, and credit unions.

Commercial Banks

Commercial banks are the most common banks. These banks offer a broad range of financial services for individuals and businesses. Typical commercial bank services are deposit accounts, checking accounts, and loans. Most commercial bank activities are concerned with receiving deposits and lending to businesses. Commercial banks generate money by charging interest on loans to businesses and consumers and by buying corporate and government bonds. Most commercial banks are privately owned and run for profit, while others are members of the Federal Reserve System.

Savings and Loan Associations

Savings and Loan Associations (SLA) are financial institutions that were created to accept savings from private investors and provide home mortgage services for residential borrowers. In the 1980s, deregulatory measures allowed SLAs to participate in riskier loans, thus creating recent financial failures.

Savings Banks

Savings banks primarily act as financial intermediaries that receive consumer saving deposits and invests the deposits in loans primarily for commercial and residential real estate. They can also invest in government and high quality corporate bonds and blue chip stock.

Credit Unions

Credit unions are non-profit, financial institutions that operate as a commercial bank, but are owned and controlled by its members. These government-chartered financial institutions are typically formed by members who are employed by the same company or organization.

The First Bank of the United States

The United States bank was first chartered in 1791 by President George Washington. Then secretary of treasury, Alexander Hamilton, modeled America's first bank after the British Central Bank. Its initial importance was to regulate the money supply by controlling the amount of notes state banks could use and by acting as the depository of the Treasury's funds. From those intentions, the U.S. bank has been crucial to America's rise in wealth.

The World Bank

The World Bank is one of the United Nations' focused agencies comprised of 184 countries. The World Bank is constituted by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The purpose of the World Bank is to reduce global poverty and improve impoverished living standards.

The IBRD primarily focuses on middle income and creditworthy poor countries. It targets these countries in order to provide them with assistance in raising their economy and life standards.

The IDA primarily attends to the poorest countries in the world. Jointly, they provide low-interest loans and interest-free credit.

Both the IBRD and IDA issue grants to help develop countries for education, health, infrastructure, and communications.

By Lydia Park




	Banks A bank is a financial safe-house that essentially allows its users to borrow or store money. U.S. banks are categorized into commercial banks, savings and loan associations, savings banks, and credit unions. Commercial Banks Commercial banks are the most common banks. These banks offer a broad range of financial services for individuals and businesses. Typical commercial bank services are deposit accounts, checking accounts, and loans. Most commercial bank activities are concerned with receiving deposits and lending to businesses. Commercial banks generate money by charging interest on loans to businesses and consumers and by buying corporate and government bonds. Most commercial banks are privately owned and run for profit, while others are members of the Federal Reserve System. Savings and Loan Associations Savings and Loan Associations (SLA) are financial institutions that were created to accept savings from private investors and provide home mortgage services for residential borrowers. In the 1980s, deregulatory measures allowed SLAs to participate in riskier loans, thus creating recent financial failures. Savings Banks Savings banks primarily act as financial intermediaries that receive consumer saving deposits and invests the deposits in loans primarily for commercial and residential real estate. They can also invest in government and high quality corporate bonds and blue chip stock. Credit Unions Credit unions are non-profit, financial institutions that operate as a commercial bank, but are owned and controlled by its members. These government-chartered financial institutions are typically formed by members who are employed by the same company or organization. The First Bank of the United States The United States bank was first chartered in 1791 by President George Washington. Then secretary of treasury, Alexander Hamilton, modeled America's first bank after the British Central Bank. Its initial importance was to regulate the money supply by controlling the amount of notes state banks could use and by acting as the depository of the Treasury's funds. From those intentions, the U.S. bank has been crucial to America's rise in wealth. The World Bank The World Bank is one of the United Nations' focused agencies comprised of 184 countries. The World Bank is constituted by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The purpose of the World Bank is to reduce global poverty and improve impoverished living standards. The IBRD primarily focuses on middle income and creditworthy poor countries. It targets these countries in order to provide them with assistance in raising their economy and life standards. The IDA primarily attends to the poorest countries in the world. Jointly, they provide low-interest loans and interest-free credit. Both the IBRD and IDA issue grants to help develop countries for education, health, infrastructure, and communications. By Lydia Park Related Links: Wikipedia - Bank Wikipedia definition of banks.