Most market economies have a two-tier structure, which implies both horizontal and vertical interconnections between banks. The need for a two-tier banking system is due to the contradictory nature of…Continue readingBanking systems
What bank does the future hold?
The technological revolution is affecting all industries, transforming all kinds of industries. This is why, in this digital age, more and more people are talking about the future of banking…Continue readingWhat bank does the future hold?
Retail banks are the most common type of bank used by individuals and small businesses. When you think of your local bank, it’s probably a retail bank. Banks like Chase…Continue readingRetail Banks
The next type of bank we have is a commercial bank. These banks are primarily for businesses, but individual consumers can also bank at commercial institutions. Commercial banks provide small…Continue readingCommercial banks
Investment banks are slightly different from the other two on the list. Their main function is actually to manage the trading of stocks, securities and bonds between companies and their…Continue readingInvestment banks
Characteristics of the elements of the banking system
Credit unions are essentially non-profit banking institutions. They are very similar in function to retail and commercial banks, and their services focus on individual consumers, startups, and small businesses. Unlike…Continue readingCredit unions
Private banks are reserved exclusively for the wealthy who have assets of at least $1 million. However, the minimum amount of cash required to open an account varies from bank…Continue readingPrivate banks
Some banks have no physical location and exist entirely online. Online banks are a relatively new trend, providing maximum convenience. With online banking, you can do all your banking from…Continue readingOnline Banks
Savings and loan associations are not technically banks in the traditional sense. They are mutual financial institutions that offer mortgages, refinance loans, and alternative home loans using escrowed savings. Also…Continue readingSavings and loan associations
Finally, we will look at the shadow banking system. If shadow banking seems too dubious for you, this industry is also called marketplace lending. It is a banking network that…Continue readingShadow Banks
Challenger banks are called challenger banks precisely because they challenge the traditional format of banking. Challenger banks are more of a mishmash of many other types of banks, unless they…Continue readingChallenger Banks
The term home banking began to be used in the late 1990s, when it became possible to do any kind of management outside the physical headquarters of any bank office and in a wider time frame.…Continue readingThe evolution of home banking