Читайте также:
|
Businesses that distribute or deal in money are called financial institutions. New institutions that meet new financial needs are appearing almost every day. The most familiar institutions are commercial banks, savings banks, savings and loan associations, mutual savings banks, credit unions, investment banks and so on.
A commercial bank is a privately owned profit-making corporation. It serves both individuals and businesses by offering checking and savings accounts, loans, and credit cards. It also deals in some brokerage, insurance, and financial advice.
The commercial bank is the most important source of short term loans for businesses. Sometimes the borrowers pledge collateral to back up the loan. Such loan is a secured loan. Companies with a good financial position are given the prime rate of interest which is the lowest commercial interest rate.
The commercial bank offers its customers accounts of two types: demand deposits and time deposits. A demand deposit makes the money in it available to depositors immediately, while a time deposit requires depositors to leave their money with the bank for a stated period of time.
Most banks offer their customers various savings certificates, called certificates of deposit. Savers may put their money into thirty day, six month, or two and a half year certificates. The highest interest is paid to the customers who deposit their money for a longer period.
Banking services are not free and banks charge fees for them. Many banks assess a service fee if an account balance falls beneath a particular minimum, such as $200.
Technological innovations and increased competition in the face of deregulation are changing the face of banking nowadays. Banks and other financial institutions are using computer technology now. One of the innovations is the electronic funds transfer which transfers money from individuals to the bank, from bank to bank, and from city to city through an electronic system.
Large banks are installing automatic teller machines outside their buildings. A customer can get cash, make loan payments, or transfer money from one account to another at any time of the day or night. The key to the automatic teller machine is a debit card which helps to make transfers directly to and from a customer's checking account.
Some large retailers are installing point-of-sale terminals which allow a retail customer to transfer funds from his bank account to the merchant's account.
Electronic funds transfer is making it easy for commercial banks to accept deposits outside their home states. Groups of banks are setting up automatic teller machine networks for the customers to use their debit cards to withdraw cash, transfer funds and check balances in other states.
Nowadays the banking industry is becoming less regulated. This process is stimulating the diversification of banks, and service and price competition. Financial supermarkets are appearing all over the United States. These new financial institutions are handling all types of financial transactions. They are selling life insurance to their customers, buying and selling their homes and are lending them money in addition to the traditional services of stock and bond transactions.
The competition that results from deregulation is urging the banks to offer more and better services to their customers.
V. Milovidov «English for Financial
Management Experts»
Дата добавления: 2015-09-10; просмотров: 53 | Поможем написать вашу работу | Нарушение авторских прав |