Industry organization

Date: 2015-10-07; view: 393.

Banking

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Banks safeguard money and provide loans, credit, and payment services such as checking accounts, debit cards, and cashier's checks. Banks also may offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role – accepting deposits and lending money.

There are three basic types of banks: commercial banks, savings and loan associations, and credit unions. Although some of the differences between these types of banks have lessened, there are key distinctions.

Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. Commercial banks come in a wide range of sizes, from large global banks to mid-size regional and small community banks. In addition to typical banking services, global banks lend internationally and trade foreign currencies.

Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area and provide banking services to individuals and local businesses.

Community banks are based locally and have fewer branches than regional or global banks. In recent years, online banks – which provide financial services entirely over the Internet – have entered the market, with some success. However, even in Internet banking distinctions have lessened as traditional banks also offer online banking, and some formerly Internet-only banks have opened branches.

Savings banks, savings & loan associations

Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of consumers. Over time, distinctions between savings banks and commercial banks have largely disappeared.

Credit unions

Credit unions are another kind of depository institution. Credit unions are formed by people with a common bond, such as those who work for the same company, belong to the same labor union, or live in the same county. Only people who have the common bond are allowed to become members. Loans and savings accounts are restricted to members. Credit unions are nonprofit organizations that are governed by a board elected by the depositors (members).

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Vocabulary list:_________________________________________________

safeguard – охранять, защищать

cashier's check – банковский чек

diminish – уменьшать, сокращать

savings and loan associations - ссудо-сберегательная ассоциация

automated teller machine - автоматический кассир, автоматическая кассовая машина

mortgage – заклад, ипотека

cater – поставлять, обеспечивать, обслуживать