The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.
A limited service financial institution that raises funds by selling certificates called “investment shares” and by accepting deposits. Often 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 differ from commercial banks because they do not offer demand deposit (checking) accounts. Industrial banks are not regulated by the Federal Reserve.