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. Loan

    The act of giving money, property or other material goods to ...
  3. Industry

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

    A financial institution licensed as a receiver of deposits. There ...
  5. Yield On Earning Assets

    A financial solvency ratio that compares a financial institution’s ...
  6. BOGO Loan

    A lending scheme in which a financial institution or other lender ...
RELATED FAQS
  1. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Full Answer >>
  2. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  3. Why do companies issue debt and bonds? Can't they just borrow from the bank?

    Companies issue bonds to finance operations. Most companies can borrow from banks, but view direct borrowing from a bank ... Read Full Answer >>
  4. What's the difference between a bank guarantee and a letter of credit?

    A bank guarantee and a letter of credit are similar in many ways but they're two different things. Letters of credit ensure ... Read Full Answer >>
  5. Do small banks ever act as custodians?

    Generally speaking, the market for custodian bank services is dominated by large banks. The best banks tend to grow in size, ... Read Full Answer >>
  6. Will technology ever disrupt the role of the custodian bank?

    Custodian banks, along with other financial institutions that hold custodian accounts, are likely to be disrupted but not ... Read Full Answer >>
Related Articles
  1. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  2. Economics

    Explaining Risk-Weighted Assets

    Risk-weighted assets is a banking term that refers to a method of measuring the risk inherent in a bank’s assets, which is typically its loan portfolio.
  3. Economics

    Explaining Tier 1 Capital

    Tier 1 capital refers to the core capital a bank must maintain in relation to its assets.
  4. Chart Advisor

    Trade Strong Trends in Financials with this ETF

    The strong move on the chart of the XBE ETF suggests that now could be the ideal time for traders to look for niche stocks to ride the upward momentum.
  5. Personal Finance

    What Skills Do You Need For An Investment Banking Job?

    Aspiring for the best paid investment banking jobs? Here is the list of top skills that investment banks look for in job candidates.
  6. Personal Finance

    5 Financial Tools You Can Throw Out The Window

    Bank deposit slip: what's that? Everyday tools of our financial life that went from indispensable to obsolete.
  7. Budgeting

    What Are The Best Mobile Banking Apps?

    As a society we expect to have 24/7 access to everything in our lives, our bank accounts included.
  8. Economics

    One Silver Lining Of Slower Global Growth

    Stocks struggled last week amid more evidence out of the world’s largest economies that global economic growth isn’t accelerating as expected.
  9. Mutual Funds & ETFs

    Financial Bear 3X (FAZ): Bull in a Bear Suit?

    Why the Financial Bear 3X Direxion ETF looks like a bullish bet.
  10. 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.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center