Industrial Bank

AAA

DEFINITION of 'Industrial Bank'

A financial institution with a limited scope of services. Industrial banks sell certificates that are labeled as investment shares and also accept customer deposits. They then invest the proceeds in installment loans for consumers and small businesses. These banks are also known as Morris banks or industrial loan companies.

INVESTOPEDIA EXPLAINS 'Industrial Bank'

Industrial banks differ from commercial lenders because they accept deposits. They also differ from commercial banks because they do not offer checking accounts. Furthermore, the loans offered by industrial banks are often secured by a third party who acts as guarantor for the loan.

RELATED TERMS
  1. Limited Service Bank

    Any type of banking business facility that is located separately ...
  2. Bank

    A financial institution licensed as a receiver of deposits. There ...
  3. Industry

    A classification that refers to a group of companies that are ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Asset Management and Disposition ...

    A type of contract between the Federal Deposit Insurance Corporation ...
  6. LIBOR Scandal

    A scandal in which financial institutions were accused of fixing ...
Related Articles
  1. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  2. What's the difference between a bank ...
    Investing

    What's the difference between a bank ...

  3. Why do companies issue debt and bonds? ...
    Investing

    Why do companies issue debt and bonds? ...

  4. What is the difference between investment ...
    Investing

    What is the difference between investment ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center