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.

  1. Branch Banking

    Branch banking is engaging in banking activities such as accepting ...
  2. Retail Banking

    Typical mass-market banking in which individual customers use ...
  3. Chain Banking

    Chain banking is a form of bank governance that occurs when a ...
  4. International Banking Act of 1978

    Federal banking legislation that put all domestic bank branches ...
  5. Universal Banking

    Universal banking is a banking system in which banks provide ...
  6. Relationship Banking

    Relationship banking is a strategy used by banks to strengthen ...
Related Articles
  1. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  2. Personal Finance

    Banking Has Changed: What Does It Mean For Consumers?

    Banks have long been leading spenders on technological innovations. Learn the key changes in the banking industry and what institution is right for you.
  3. 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.
  4. Personal Finance

    What is Fractional Reserve Banking?

    Fractional reserve banking is the banking system most countries use today.
  5. Tech

    The Future Of Mobile Banking (JPM, BAC)

    Typically slow to react to technological change, retail banks are finally recognizing the benefits it provides to consumers as well as the cost savings it gives the firm.
  6. Investing

    Bank of America Tests Automated Branches

    Bank of America offers mortgage, credit card and auto loan service through virtual channels at its new smaller branches.
  7. Investing

    How Bank of America Holds 1/8 of All U.S. Deposits

    Bank of America isn't America's central bank, but given its size and spread, you could be forgiven this misapprehension.
  1. What is the banking sector?

    Why the banking sector is a vital industry, what it does to drive economic growth and examples of companies in this sector. Read Answer >>
  2. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  3. What are The Nine Major Financial Institutions?

    There are nine major types of financial institutions. Understand these major types of financial institutions that exist in ... Read Answer >>
  4. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  5. What other sectors are most similar to banking?

    Learn valuable information about the many different subsectors in the financial services sector that most closely resemble ... Read Answer >>
  6. How do leverage ratios help to regulate how much banks lend or invest?

    Learn what leverage ratios mean for banks, how regulators restrict leverage, and what impact ratios have on a bank's ability ... Read Answer >>
Trading Center