What is an industrial bank?
The industrial bank is a financial institution that provides loans to individuals and companies associated with specific types of industry. This example of a limited service bank is often owned by non -financial corporations and is usually subject to the same regulations and protection that are offered, although banks owned by financial corporations. While the general idea of an industrial bank is located in various countries around the world, the term itself is used almost exclusively in the United States.
The exact model for the industrial bank will vary somewhat, depending on the consumer market sector, which serves as a target audience for operation. The bank can focus on providing loans to individuals working in the industry, many of which are simple short -term loans that allow you to buy a vehicle or make minor repairs of the house. Some extend mortgages and other long -term loans to individuals, but these types of loans for businesses are more common.
Another focus of the industrial bank may be to provide loans for specific purposes related to the owner of the institution. For example, furniture manufacturer can set up industrial banks as a means of financing their products, either by furniture shops or individuals who meet the credit requirements set by the institution. This approach can sometimes simplify the financing process and can even provide the customer with a slightly better interest rate and other repayment conditions than could be obtained elsewhere.
It is important to realize than the industrial bank does not always offer the same range of services as other banks. Most will focus only on rental activities and do not provide other types of accounts for their customers. For this reason, any individual or company that also business with a credit institution of this kind also bank accounts in other institutions, including control and savingsími accounts.
In the United States, an industrial bank can have a branch located in several countries, and institutions are rented in one of the states where it has the presence. Not every state in the US allows the rental of an industrial bank, although there is speculation that the number will increase in the next few decades. Of all countries that are currently allowing the Charter of Industrial Banks, most are rented in Utah. Other countries that currently allow the rental of these types of banks include California, Hawaii, Minnesota and Indiana.