Types of Banks and Banking Concepts

Front

What is the primary customer of a Retail Bank?

Back

A consumer or small business

Front

Which type of bank's main customers are companies and offers lines of credit, foreign exchange, and business loans?

Back

Commercial Banks

Front

The goal of Investment Banks is:

Back

To facilitate capital raising and financial advisory services

Front

Online Banks have no brick-and-mortar location.

Back

True

Front

Savings and Loan Institutions are similar to retail banks, but their account deposits are used as loans to homeowners for their ________.

Back

mortgages

Front

Credit Unions are non-profit, customer-owned banks that function like ________.

Back

retail banks

Front

Credit risk in banking refers to:

Back

The risk of loss due to a borrower's failure to repay a loan or meet contractual obligations.

Front

What type of risk involves the bank's operations, including computer systems, employee training, cybersecurity issues, and day-to-day services?

Back

Operational Risk

Front

Banks' reputations can be damaged by who they do business with, employee conduct, or social media posts. What is this type of risk called?

Back

Reputational Risk

Front

Which type of risk requires banks to follow industry regulations and governmental laws, and can result in fines or lawsuits if not followed?

Back

Compliance Risk