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4 types of banks: commercial banks, investment banks, central banks, credit union 商业银行, 信用合作社, 投资银行, 中央银行 #5

Open YuezhenQin opened 2 months ago

YuezhenQin commented 2 months ago

The function of banking system depends on the types of banks in its system.

YuezhenQin commented 2 months ago

Commercial banks are for-profit entities that provide services to their account holders. These type of financial institutions usually operate at the local, regional or national level.

Credit unions are non-profit entities owned by account holders, also called members. They are typically found in a local level.

Investment banks are financial institutions in that they play a role in the financial intermediation process by channeling funds from savers to borrowers.

financial intermediation is the process by which financial institutions transfer funds from those who save money to those who borrow money.

Unlike commercial banks and credit unions, they usually don't provide services to the public. Area of focus include initial public offerings (IPOs), corporate mergers, share offerings and underwriting activities. They may also function as brokers, provide financial advice to corporations, or serve as the middlemen between investors and securities issuers. Examples of investment banks include, citi group, Goldman Sachs, Morgan Stanley.