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.