BANKS IN NEW YORK CITY

Manhattan is one of the banking capitals of the world with offices of most major world banks.

Types of banks in the USA:

Commercial banks: accept deposits, offer checking accounts, savings accounts and certificates of deposit, and lend money. Each separate account is insured for up to $100,000 by the FDIC. In addition some banks rent safe deposit boxes, exchange currency, and cash and sell traveler's checks.

Think of banking as divided into "retail banking" for individuals and small businesses and "corporate banking" for financing and servicing medium and large size companies. Note also that many "commercial banks" have started to compete in providing other financial services (brokerage accounts, insurance and pensions).

Savings and Loans:once specialized in home mortgage lending and savings accounts but now have entered the broad consumer market for financial services.

Investment Banks:are not "banks" as commonly understood but are "deal-makers" and "investment managers" raising capital and managing investment funds, take ownership positions, etc. Only the Securities and Exchange Commission regulates them. See FINANCIAL INSTITUTIONS.

Foreign Bank, Representatives: Many of the "branches" of foreign banks do not offer full service banks for retail customers, but only for their large corporate customers.

Regulation: Most commercial and savings banks in the USA are regulated by the Federal Reserve Bank (really, the central bank for the USA). The New York State Banking Commission regulates a few of the smaller banks in New York. Both types are subject to capital requirements, "reserve requirements" and regular audits by banking authorities.

US Central Bank: The "Fed" as it is commonly referred to by economists, investors and corporate finance types, is really the US Central Bank. Although it has 12 Federal Reserve Banks around the country (from San Francisco to St. Louis to Atlanta), The Federal Reserve Bank of New York is the largest and most important in part because it is responsible for "open market operations" to adjust the money supply and storage of gold for other nations. Monetary policy of the US is set by The Federal Reserve Board of Governors (appointed for 14-year terms) and traditionally has been independent of both Congress and The President.

See also the following related categories: CURRENCY EXCHANGE, FINANCIAL INSTITUTIONS, and FINANCIAL SERVICES(for individuals and families).