The links between American banks are sometimes complex and not always obvious.
Commercial banks are legally prohibited from owning manufacturing plants and retail facilities. But they do it informally, through lending to the right organizations. Another way to participate is to manage companies by proxy and represent their interests at shareholders’ meetings.
Another unobvious connection is the provision of loans to small banks by large banks. Formally, borrowing banks remain independent, but in reality they come under the influence of the lender.
The next form of a corporation of banks is the exchange of shares of each other and the redemption of other people’s shares. This is how holding companies appear that own shares of several banks.
Banking services in the USA
It would be too long and pointless to describe all the banking services and services available in the United States. The United States has a highly developed and flexible banking sector with many opportunities.
The most popular and demanded banking products are usually called:
Mortgage loans
There are many options with different rates depending on the client’s creditworthiness, choice of housing, etc. The usual rate is 3.25-4%. Stateless persons – up to 7%. The best guarantee for a loan is a down payment of 40% or more.
Car loans
The high level of auto sales in the United States is largely due to auto loans. They are available and offered at low rates. A hassle-free, profitable client for the bank can get a car loan at 0.5% per annum, a borrower with a high risk is assigned up to 9%. The average rate is about 3.3%. Short term loans are cheaper.
Study Loans
Education in the United States is usually paid and quite expensive. It is more profitable for young people not to waste time collecting money, but to take out a loan for training, find a better paid job and pay off the loan. The rate for such loans is usually below 5%.
Consumer loans
In the US, they are called Personal Loan, they are given out for various needs at an average rate of 6%.
Loans for business
Such loans in the United States are issued by many banks, with different conditions and for different periods. Much depends on the business plan and risk assessment. The usual rates are 5-15%.
