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Unformatted text preview: o Functions Control the money supply with monetary policy Regulate financial institutions Manage regional and national check-clearing procedures and distribute currency Supervise the federal deposit insurance of commercial banks FDIC- Federal Deposit Insurance Corporation o Insures personal accounts in commercial banks up to a maximum of $100,000 Banking institutions o Commercial banks (real banks) o Savings and loans associations (mortgages come from here) o Mutual savings banks o Credit unions Non-banking institutions o Finance companies o Non-financial firms o Brokerage firms o Mutual funds o Pension funds o Insurance companies Competition in banking o Rapid technology advancements EFTS, atms, bill payment o Increase competition Walmart Financial service firms Globalizations o Banking is Natural oligopoly Technology/ scale benefit...
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