- Small banking centres that cater to certain communities or specialized industries. Niche banks are thriving in the fallout from mega-bank mergers.
specialized bank, specialty bank
Related Terms and Acronyms
- Bank — Definition,
- An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
- Commercial Bank (CB) — Acronym,
- A financial institution that provides a broad range of services, from chequing and savings accounts to business loans and credit cards.
- Community Bank — Definition,
- A bank that is locally owned and operated, but is not part of a bank holding company. Also referred to as an independent bank.
- Credit Union (CU) — Acronym,
➥ Credit unions are member-owned, full service co-operative financial institutions.
- A non-profit, cooperative financial institution owned and controlled by the people who use its services, usually a group such as employees in the same company or industry. Credit unions historically have been able to offer lower rates and fees and still operate in the black. Credit unions rely on a financial reserve to absorb unexpected losses from loan defaults or other financial setbacks, and the majority of credit unions carry federal deposit insurance that protects individual accounts up to a specified amount in the event the credit union fails.
- Independent Bank — Definition,
- A locally owned bank that is operated without being affiliated with a bank holding company. Also known as a community bank.
- Regional Bank — Definition,
- A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the province in which it is located. Usually called a Credit Union in Canada.