American Bankers Association - ABA

AAA

DEFINITION of 'American Bankers Association - ABA'

The American Bankers Association (ABA) is the largest banking trade association in the United States. Founded in 1875, the ABA represents banks of all sizes. The ABA offers a wide range of products and services to its members, in fields such as staff training, insurance, capital management, asset management, risk/compliance and consulting.

The nine-digit routing numbers seen on every check originate in a system of bank transit numbers developed by the ABA in 1910.

INVESTOPEDIA EXPLAINS 'American Bankers Association - ABA'

The ABA is very active in lobbying Congress on behalf of banking interests. The focus of its lobbying effort in recent years has been the elimination of the tax-exempt status of credit unions. Traditionally, the credit union served a small, highly targeted membership, such as the employees of a company. In recent years, however, credit unions have been able to greatly expand their fields of membership and potential customer pools. Many credit unions now have over $1 billion in assets and rival the size of large banks. The ABA argues that credit unions have become so much like banks that their tax-exempt status is no longer justified.

RELATED TERMS
  1. Certified Trust And Financial Advisor ...

    A professional credential offered by the American Bankers Association ...
  2. British Bankers Association - BBA

    The leading trade association that represents the views of those ...
  3. Tax Exempt

    To be free from, or not subject to, taxation by regulators or ...
  4. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. American National Standards Institute ...

    An organization that oversees the creation and dissemination ...
RELATED FAQS
  1. Are all bank accounts insured by the FDIC?

    The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against ... Read Full Answer >>
  2. What are some common questions an interviewer may ask during an interview for a position ...

    When interviewing for a job at an investment bank, a candidate is likely to answer questions about his career and education ... Read Full Answer >>
  3. What do mortgage lenders use the securitization food chain?

    The phrase "securitization food chain" was made popular by director Chris Ferguson in "Inside Job," a film about the 2007-2 ... Read Full Answer >>
  4. What are some roles of an investment bank?

    Investment banks serve a number of purposes in the financial and investment world, including underwriting of new stock issues, ... Read Full Answer >>
  5. How did the Volcker Rule affect investment banks, and how does this lower the chances ...

    The Volcker Rule affected investment banks by curtailing their ability to engage in certain types of trading. Specifically, ... Read Full Answer >>
  6. How does inflation affect a company's short-term investments?

    Inflation marginally erodes a company's short-term investments. Short-term investments are typically ultra-safe liquid assets, ... Read Full Answer >>
Related Articles
  1. Retirement

    Tired Of Banks? Try A Credit Union

    These nonprofit organizations can provide a range of services for lower fees.
  2. Mutual Funds & ETFs

    Investing In Credit Card Companies

    This investment requires keeping an eye on consumer indexes and the overall health of the economy.
  3. Retirement

    10 Bank-Breaking Money Myths

    Just because a belief is common, doesn't mean that it's true. Here we separate fact from fiction.
  4. Professionals

    Financial Professionals: The Benefits Of Joining An Association

    Make a name for yourself among your industry peers by joining a professional association.
  5. Options & Futures

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
  6. Savings

    Expat's Guide To Bank Accounts In The Philippines

    You'll need an ACR I-Card and other documents to open a bank account in the Philippines. Be sure to read the fine print about how much money is insured.
  7. Investing News

    Investing Early In The Future of Data Security

    Data breaches are becoming increasingly common. Among the foremost technologies paving the path for the future of data security is biometrics.
  8. Economics

    Will “Internet-Only” Banks Change Chinese Banking?

    Private players offering internet-only banking services to a large section of China's population must overcome some challenges to gain market momentum.
  9. Credit & Loans

    The Pros & Cons Of Personal Loans vs. Credit Cards

    One is not like the other. We help you decide where to borrow money from.
  10. Stock Analysis

    What Makes Goldman Sachs a Good Bet?

    Six years after the subprime meltdown, Goldman Sachs is a robust $87 billion company instead of a historical footnote. Here's why.

You May Also Like

Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center