Retail banks are general banking institutions that deal with individual customers and small scale industrialists. These banks provide assistance related to money matters to individual clients plus store their hard earned revenues. These banks normally deal in home loans, savings, as well as checking accounts, credit cards, deposit funds etc. The productivity of banking institutions no wonder, vary to a great extent but these retail banks are without doubt productive and beneficial.
Top rated banks have the policy of stop and shop, as they offer a number of retail services to their clients. A few among these banks also deal in investment banking and provide its customers with monetary assistance in the form of brokerage accounts, fiscal management and also provide retirement plans.
These banks provide money to the loan applicants by taking money from the accounts of other customers. These banks then charge interest on the money they lend, whose small portion is then provided to the stored money while the major part is kept by the bank. This process keeps the money in circulation. The banks also regulate money among the different classes of people and the government.
However US retail banks has a huge setup and its working is more complicated than appear to the eyes. There are several kinds of retail banks which are designated with not only a separate domain name but also has a distinct function. Some of the kinds of these banks, are given below:
o Private Banks: Private Banks deal with elite individuals and also with the owners of large scale business. They provide the financial assistance to this particular domain and are often considered as a whole separate branch because of their clients being from a different social class; but no matter what, as the main definition works, they also come under retail banks.
Previously the opening amount for one account in a private bank was no less than 1 million US dollar, but due to its increasing popularity the charges and amount is reduced to a quarter of original.
o Commercial Banks: Initially commercial as well as the investment banking institutions fall under this category. It was only after the Great Depression that the US’s Congress put a restriction on investment banks to work only with the first house market. The function of these retail banks is to look after the sponsorship matters associated with the elite business class.
o Community Development Banks: This type of banks deals specially with the ignored majority of the community and offers loans and services to them.
o Ethical Banks: The banks that only consider social accountable earnings and runs on transparent policy are called ethical banks. Offshore Banks: The US retail banks that have the least laws and commandments as well as lowest interest quotients are offshore banks. They are usually private.
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