Branch (banking)

Source: Wikipedia, the free encyclopedia.
"Bank branch" redirects here. For the stream, see
Northern line (Bank branch). For the business organization, see Branch office
.
historical building
.
Porter Ranch, Los Angeles, California

A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution (including a brokerage firm) offers a wide array of face-to-face and automated services to its customers.

History and description

During the 3rd century banks in Persia (now Iran) and in other territories started to issue letters of credit known as Sakks, basically checks in today’s language, that could be traded in cooperative houses or offices throughout the Persian territories.[citation needed] In the period from 1100-1300 banking started to expand across Europe and banks began opening ‘branches’ in remote, foreign locations to support international trade.[citation needed] In 1327, Avignon which is located in France had 43 branches of Italian banking houses alone.[citation needed]

The practice of opening satellite branches was popularized in the early 20th century by Amadeo Giannini, then head of the Bank of America.[1] Historically, branches were housed in imposing buildings, often in a neoclassical style of architecture. Today, branches may also take the form of smaller offices within a larger complex, such as a shopping mall.[2]

Traditionally, the branch was the only place to access a financial institution's services. Services provided by a branch include cash withdrawals and deposits from a

financial advice through a specialist, safe deposit box rentals, bureau de change, insurance sales (where it is allowed by law), etc. In the early 21st century, features such as automated teller machines (ATM), telephone and online banking, allowed customers to bank from remote locations and after business hours. This has caused financial institutions to reduce their branch business hours and merge smaller branches into larger ones. Conversely, they converted some into mini-branches[3] with only ATMs for cash withdrawal and depositing; computer terminals for online banking and cheque
depositing machines. Some mini-branches may have one or no human staff with only telephone support.

Some financial institutions, in an attempt to show a friendlier image, offer a

virtuals or direct banks
.

Legal restrictions in the United States

Historically, branch banking in the United States—especially interstate branch banking—was viewed unfavorably by regulatory authorities, who correctly foresaw the risk of banks becoming

Bank Holding Company Act of 1956
prohibited bank holding companies headquartered in one state from having branches in any other state.

Most interstate banking prohibitions were repealed by the

Docutel was an early ATM manufacturer, the state's banks did not purchase them until Texas Attorney General Crawford Martin ruled in August 1971 that ATMs did not violate the Texas Constitution's prohibition on bank branches.[7] In 1980 Article XVI, Section 16, of the constitution was amended to permit banks to have unmanned ATMs in the county of their domicile.[8] The prohibition on bank branches existed until 1986.[7]

Types of branches

Instore

These are typically branches located in a retail space such as a

videoconferencing, and video banking
systems.

Foreign bank branch

A type of foreign bank that is obligated to follow the regulations of both the home and host countries, operating in the country.[9] regulated by the Office of the Superintendent of Financial Institutions.[10]

Wikimedia Commons has media related to Bank branches.

References

  1. ^ "A.P. Giannini".
  2. ^ "Kroger pays $17M for Delray Beach shopping center and branch". 31 July 2018.
  3. ^ "Answers - The Most Trusted Place for Answering Life's Questions". Answers.com. Retrieved 11 April 2018.
  4. ^ http://www.fdic.gov/regulations/laws/rules/6500-3500.html, Federal Deposit Insurance Corporation
  5. ^ Federal Reserve Bank of Chicago, Assessing a Decade of Interstate Bank Branching, April 2007
  6. AllBusiness
    . Retrieved 2010-05-24.
  7. ^ a b Bevis, Spencer (2022-03-06). "The rise and fall of Docutel, the Dallas-area company that created the first ATMs". Dallas Morning News. Retrieved 2023-03-30.
  8. ^ "History of the Banking Industry in Texas and the Department | Texas Department of Banking".
  9. ^ "Banks Operating in Canada, CBA". cba.ca. Archived from the original on 20 August 2016. Retrieved 11 April 2018.
  10. ^ Institutions, Office of the Superintendent of Financial (19 March 2013). "404". osfi-bsif.gc.ca. Retrieved 11 April 2018. {{cite web}}: Cite uses generic title (help)
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