copyright © cengage learning. all rights reserved the american banking industry commercial bank...

Copyright © Cengage Learning. All rights reserved

The American Banking Industry

• Commercial bank– A profit-making organization that accepts deposits,

makes loans, and provides related services to its customers

– National bank: A commercial bank chartered by the U.S. Comptroller of the Currency

– State bank: A commercial bank chartered by the banking authorities in the state in which it operates

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Seven Largest U.S. Banks

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Source: The Fortune website, www.fortune.com, accessed September 30, 2008.

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The American Banking Industry (cont’d)

• Other financial institutions– Savings and loan associations (S&L)

• A financial institution that offers checking and savings accounts and certificates of deposit and that invests most of its assets in home-mortgage loans and other consumer loans

– Credit unions• A financial institution that accepts deposits from and

lends money to only those people who are its members• Members are usually employees of a particular firm,

people in a particular profession, or those who live in a community served by a local credit union

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The American Banking Industry (cont’d)

• Other financial institutions (cont’d)– Mutual savings banks– Insurance companies– Pension funds– Brokerage firms– Finance companies– Investment banking firms

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Careers in Banking

• The 7 largest banks in the U.S. employ approx. 1,132,000 people

• The U.S. Department of Labor expects the number of people employed in banking to grow more slowly than other jobs in the economy between now and the year 2012.

• Traits of successful bankers– Honesty– Ability to interact with people– Strong background in accounting– Appreciation for the banking-finance relationship– Basic computer skills

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