Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Industrial bank

Industrial bank Definition

A limited service financial institution that raises funds by selling certificates called "investment shares" and by accepting deposits, and invests such funds in installment loans to consumers and to small businesses. Often such loans are secured by a third party who signs a co-maker note pledging to repay the loan if the borrower defaults, or the loan is secured by a chattel mortgage. Industrial banks are sometimes called Morris Plan banks or industrial loan companies. Industrial banks are distinguished from commercial loan companies because industrial banks accept deposits in addition to making consumer loans. Industrial banks are distinguished from commercial banks because industrial banks do not offer demand deposit (checking) accounts.

RELATED CATEGORIES
Banking




Submit a Definition



Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z