Online Banking basics
The United States have more than 150 banks. The banks are divided in to personal banks, commercial banks, private banks, investments banks etc. The banking services of the US are benchmark for any other developed or developing countries. Here is an article to refer to know more about banking services available in the United States!
How did banking services started in the US?
In the late 80's, the private entities found difficulties in raising money for their business and these needs demanded a loan issuers. The insider lending therefore started in the US and became error-free still somewhat discriminatory banking services. Banking in this era was more a monopoly market and in 1781, an act of the Congress of the Confederation established the Bank of North America in Philadelphia.
How good is banking services forming part of the US?
The banking services of the US are forming almost more than 50% of the US economy and that shows the level of role playing banking sector have in the domination of the US on other part of the world. The US is highly relied on the service sector side and banking services are obviously going to score high due to these reasons.
What is banking?
A bank is a financial institution wherein the money is deposited by the general people and later can be withdrawn any time. The bank has two primary activities – depositing and lending. From the money deposited by the people, the issues various kinds of loans to needy people under different schemes and earn interest and other charges from them. On the other side, bank encourages savings by paying interest on the deposits hold by it. The size of the bank is judged by the advances gathered by it.
Who does govern banks?
The banks in the United States are governed by both federal and state government unlike any other developed country. The banks were governed by enacting laws like national bank act in 1863 and 1864. It is the national banking that started making the banks nationalised and also introduced common US banking policy surviving even today.
What are the main objectives of the banks?
The banks are divided in nationalised bank and non-nationalised or private banks. The basic aim of the banking services is to save money of the people in the most secure way, provide an extra income on the savings and lend at the time needed. The banks in this way encourage both savings and lending. The banks flows back the money in the economy every time needed and by this way circulate the whole economy.
What are the auxiliary services of the banks?
Today, the banking business has reached to another level. The banks now offers insurance, risky funding, employee management, investment solutions, industry analysis, comes out with short term and long term loans and even investments from time and again. The banks caters all kind of demands be it personal, business (small or large corporate). With the ATMs and online banking services, the banks have become more homely for the customers.