DEFINITION of 'Limited Service Bank'

Any type of banking business facility that is located separately from the bank's main location. At these locations, banks may take customer deposits, but the bank cannot make loans or offer trust services there. Limited service banks only exist in unit banking states, where operation of more than a single full-service bank branch is prohibited.

BREAKING DOWN 'Limited Service Bank'

Another definition for limited service bank is any bank that is limited in its own charter regarding the products and services that it can offer. This type of bank generally specializes in only one or two products, such as credit cards or auto loans. It may also offer other services on a limited and irregular basis.

RELATED TERMS
  1. Branch Banking

    Engaging in banking activities such as accepting deposits or ...
  2. Retail Banking

    Typical mass-market banking in which individual customers use ...
  3. International Banking Act of 1978

    Federal banking legislation that put all domestic bank branches ...
  4. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  5. Universal Banking

    A banking system in which banks provide a wide variety of financial ...
  6. McFadden Act

    Federal legislation that gave individual states the authority ...
Related Articles
  1. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  2. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  3. Investing

    What is a Bank?

    A bank is a financial institution licensed to receive deposits or issue new securities to the public.
  4. Insights

    The Role of Commercial Banks in the Economy

    We interact with commercial banks daily to carry out simple financial tasks. That said, the function and creation of a commercial bank is anything but simple.
  5. Insights

    How Online Banking Is Overtaking Traditional Banking

    Is traditional banking doomed to be surpassed by online banking?
  6. Personal Finance

    What is Fractional Reserve Banking?

    Fractional reserve banking is the banking system most countries use today.
  7. Personal Finance

    Choose To Beat The Bank

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

    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.
RELATED FAQS
  1. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  2. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
  3. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  4. How does the deposit multiplier affect a bank's profitability?

    Find out how a deposit multiplier affects bank profitability, how it increases the supply of money in the economy and why ... Read Answer >>
  5. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
  6. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
Trading Center