Banks are financial institutions that accept deposits, make loans, and provide other financial services. There are many different types of banks, each with its own unique set of services and offerings.
Key Facts
- Commercial Banks: These are the most common type of banks that provide a wide range of services to individuals, businesses, and government entities. They accept deposits, offer loans, provide checking and savings accounts, and other financial services.
- Retail Banks: Retail banks primarily serve individual customers and offer basic banking services such as checking and savings accounts, personal loans, mortgages, and credit cards. They often have physical branch locations for customer convenience.
- Investment Banks: Investment banks focus on providing financial services to corporations, institutions, and governments. They specialize in underwriting securities, facilitating mergers and acquisitions, and offering advisory services for capital raising and investment strategies.
- Credit Unions: Credit unions are not-for-profit financial cooperatives owned and operated by their members. They offer similar services to banks, including savings and checking accounts, loans, and credit cards. Credit unions often have a specific membership criteria, such as being part of a certain profession or community.
Commercial Banks
Commercial banks are the most common type of bank. They provide a wide range of services to individuals, businesses, and government entities. Commercial banks accept deposits, offer loans, provide checking and savings accounts, and other financial services.
Retail Banks
Retail banks primarily serve individual customers and offer basic banking services such as checking and savings accounts, personal loans, mortgages, and credit cards. They often have physical branch locations for customer convenience.
Investment Banks
Investment banks focus on providing financial services to corporations, institutions, and governments. They specialize in underwriting securities, facilitating mergers and acquisitions, and offering advisory services for capital raising and investment strategies.
Credit Unions
Credit unions are not-for-profit financial cooperatives owned and operated by their members. They offer similar services to banks, including savings and checking accounts, loans, and credit cards. Credit unions often have a specific membership criteria, such as being part of a certain profession or community.
Sources
- ABCs of Banking – Banks, Thrifts and Credit Unions
- How Banking Works, Types of Banks, and How To Choose the Best Bank for You
- 8 Common Types of Banks
FAQs
How many types of banks are there?
There are four main types of banks: commercial banks, retail banks, investment banks, and credit unions.
What is the most common type of bank?
Commercial banks are the most common type of bank.
What services do commercial banks offer?
Commercial banks offer a wide range of services to individuals, businesses, and government entities. These services include accepting deposits, offering loans, providing checking and savings accounts, and other financial services.
What is the difference between a retail bank and a commercial bank?
Retail banks primarily serve individual customers and offer basic banking services such as checking and savings accounts, personal loans, mortgages, and credit cards. Commercial banks offer a wider range of services, including investment banking, corporate lending, and international banking.
What is an investment bank?
Investment banks focus on providing financial services to corporations, institutions, and governments. They specialize in underwriting securities, facilitating mergers and acquisitions, and offering advisory services for capital raising and investment strategies.
What is a credit union?
Credit unions are not-for-profit financial cooperatives owned and operated by their members. They offer similar services to banks, including savings and checking accounts, loans, and credit cards. Credit unions often have a specific membership criteria, such as being part of a certain profession or community.