THE US BANKING SYSTEM DEVELOPMENT AND OPERATION FEATURES
The US banking system consists of thousands of banks. Many experts and financial analysts believe that America has created a so-called decentralized banking system.
Such visibility is created for a reason. The main fact — the US banking branch network is more limited than in other countries. American banks had no right to open their branches at all for a very long time.
Thus, banks may have branches only within the state. However, there are even states where bank branches opening is prohibited. The number of banks has dramatically increased in recent decades. At the same time, the number of bank branches throughout the country exceeds the total number of banks by almost two times.
Nevertheless, state branches and banks are more suitable for simple users. The offer an excellent service and take a very low fee. For example, the Southwest Georgia Bank hours pleasantly surprise all customers. You can contact this bank at any time and get the necessary answers or advice. We are going to tell about this a little bit later.
What does “the local concentration” mean?
Local concentration — concentration of banking resources in several territories (California, Texas, Illinois, New York, and Pennsylvania). There is almost a half of all US banks resources there. The secrecy of the procedure is the main feature of the US banks concentration. Moreover, the use of foreign resources through a system of correspondent relations by large banks is one of the forms of hidden bank concentration.
The second form of hidden bank concentration is the so-called system of interlocking directorates. It consists of the mutual directors’ participation in the other banks’ management. Another form of US hidden bank concentration is a chain-link system. In this case, the whole "chain" of banks is united by a temporary agreement.
The main idea of such an agreement is to conduct any major financial transactions, mutual support and mutual exchange of shares jointly. The system of banking groups consists of many banks under the control of one joint-stock company, which acquires their shares and is usually referred to as the “holding company”.
State small banks. Why are they so popular?
Local state banks are quite popular among citizens. They pay a lot of attention to their clients; help to solve various financial problems, etc. Their service is much better than other giant banks.
We will take a rather trivial example — opening hours. Many banks work almost around the clock because not all customers can come to get the necessary services and assistance. They also offer customers more favorable cooperation conditions, lower interest rates on loans, etc.