Traditional bank

Banking today has changed a lot in the last 20 years. Most banks in western society are controlled and insured, meeting stern basic standards. This does not make all banks equal because each individual bank could be secretly or in public owned, or have policies or philosophies directed toward certain goals.

Some banks will make conservative investments whilst others like more volatile investments for faster returns. There are state banks, or central banks, designed basically as bearers of standards, non-profit banks with investments especially social issues, credit unions owned by their clients, postal savings banks run by postal services, and community banks with a local investment focus like mechanics and farmers banks. Offshore banks may offer tax shelters, increased privacy, and less market-driven volatility, but are nevertheless controlled. Check cashing services, certain Internet-based money services, and some non-traditional "banking institutions" might seem to be banks, but technically don't fit the outline and thus dodge certain regulatory issues.

Universal banks offer services found among retail banks as well as investment banks, frequently with offshore banking services included. But most banks are identified as either a retail bank or an investment bank. Retail banking clients are generally people and home businesses.

Savings banks are common, each branch concentrating on local populace and business, dealing in standard savings, timed payments, insurance and credit troubles. Other retail banks include personal banks for a limited customers, community banks run by and for the local citizens, community development banks that serve to enhance local commercial standards, and banks of issue dealing in their own legal tender called banknotes. Commercial banks serve bigger companies with deposit and loan services.

Investment banking buyers are primarily massive corporations. The establishment, looking to raise investment capital, will approach an investment bank for funds. The investment bank will supply the funds and structure their investment as stocks available for sale to the general market. Regularly the investment bank will be used to structure company alliances or acquisitions. Merchant banks are similar, but have more conservative investment policies and buy shares rather than make loans.