Financial Institutions - Research Article from Encyclopedia of Business and Finance

This encyclopedia article consists of approximately 10 pages of information about Financial Institutions.
This section contains 2,718 words
(approx. 10 pages at 300 words per page)
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Deposit Taking

Deposit-taking institutions take the form of commercial banks, which accept deposits and make commercial and other loans; savings and loan associations and mutual savings banks, which accept deposits and make mortgage and other types of loans; and credit unions, which are cooperative organizations that issue share certificates and make member (consumer) and other loans. Altogether there are more than 15,000 deposit taking institutions with more than 100,000 branches spread across the economy.

The U.S. commercial banking system practiced competition through a large number of firms in the industry from 1776 to 1976. It was designed to be a unit-banking system in which state charters of banks allowed only one-office banking. The system also encouraged thrift and use of local savings for investment in the local economy. The unit-banking system not only forced competition among existing and new banks in a given banking market; it deliberately avoided the emergence of...

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This section contains 2,718 words
(approx. 10 pages at 300 words per page)
Buy the Financial Institutions Encyclopedia Article
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Encyclopedia of Business and Finance
Financial Institutions from Encyclopedia of Business and Finance. Copyright © 2001-2006 by Macmillan Reference USA, an imprint of the Gale Group. All rights reserved.
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