Question

3. Give a brief description of the following: National Banks, State Chartered Banks, Credit Unions, Savings Banks/Thrifts.

Answer 1

National Banks - They are generally the comptroller of the currency of US treasury and also one of the members of the Federal Bank. National Bank in US is just a commercial bank but the functions and objectives may differ to a certain extent and that makes it different from the commercial banks of the country. It is generally the central bank which is controlled by the government of the nation and the bank regulates all other banks in the nation.

State Chartered Bank - This is generally a commercial or retail bank which is governed by the state government and chartered. They do not have the ability to control monetary policy and on the other hand they may differ from the nationally commercialized banks to come extent.

Credit Unions - They are generally co operative organizations which are owned and operated by organizations of various size and range and the objective is to possess share of the organization so that they can provide various kinds of loans and services to each other.

Saving Banks - They are financial organizations or institutions who aims at accepting deposits and provide interest on the amount that is deposited based on the norms of the government or the central bank or themselves.