金融英语课件李丽 马跃ISBN 9787810788175 PPTchapter_3.pptVIP

Chapter 3 Depository Institutions Chapter 3 Depository Institutions Financial intermediaries can be divided into two broad categories: depository and non-depository institutions. Depository institutions are financial institutions that accept deposits from savers and make loans to borrowers; normally, we use the term “banks” as an alternative. The operations of individual banks are roughly similar throughout the world. In all countries, banks are financial intermediaries in the business of earning profits. Considering the structure and operation of the banking industry as a whole, however, the business of banking varies from nation to nation. Each country has its own unique banking history, and this fact alone accounts for distinctive features of national banking system. In the United States, there are three basic types of depository institutions: 1. commercial banks 2. savings and loan institutions (SLs) 3. credit unions Historically, they each served a different purpose and a different market. Since 1980, all these depository institutions have been able to make commercial loans, issue credit cards, establish trust departments, and enter other related lines of business. 1. Commercial Banks Commercial banks play an important role in facilitating economic growth. For many years, they were the only firms allowed to issue demand deposits and thus dominated the payment system throughout the United States. A commercial bank is an institution that accepts deposits and uses the proceeds to make consumer, commercial, and mortgage loans. Originally established to meet the needs of businesses, many of these banks now serve individual customers as well. The presence of so many commercial banks in the United States actually reflects past regulations that restricted the ability of these financial institutions to open branches. Each state had its own regulations on th