What is a High-Street Bank?
A high-street bank is a prominent retail bank that offers a variety of financial services to the general public. These banks are usually located on the main streets, often referred to as “high streets” in the UK and other Commonwealth countries, in large towns and cities. Services provided by high-street banks include savings and checking accounts, personal loans, mortgages, credit cards, and various investment products.
High-street banks play a crucial role in the financial system by servicing the deposit and withdrawal needs of the public, providing loans to both individuals and small to medium-sized enterprises (SMEs), and offering a range of financial products tailored to meet the everyday banking needs of its customers.
Examples of High-Street Banks
- Barclays Bank: A major British multinational bank headquartered in London, offering personal banking products and services.
- HSBC: One of the largest banking and financial services organizations in the world, providing a wide range of services from savings accounts to mortgage loans.
- Lloyds Bank: Known for its personal and commercial banking services, Lloyds Bank is headquartered in London and operates extensively throughout the UK.
- NatWest (National Westminster Bank): A large retail and commercial bank in the UK that offers a wide range of banking and financial products and services to personal, business, and commercial customers.
Frequently Asked Questions (FAQs)
What services do high-street banks provide?
High-street banks typically provide savings accounts, checking accounts, personal loans, mortgages, credit cards, investment advice, and insurance products.
Are online banks considered high-street banks?
No, online banks typically do not have physical branches located on high streets. High-street banks refer to traditional brick-and-mortar banks with a physical presence in main commercial areas.
How do high-street banks differ from commercial banks?
While high-street banks are a type of commercial bank, the term is commonly used to refer to mainstream retail banks that serve individuals and small enterprises. The term “commercial bank” can encompass both retail services and services tailored for large corporations and international business activities.
Can high-street banks offer business banking services?
Yes, many high-street banks also offer business banking services such as business accounts, business loans, and other financial products aimed at small to medium-sized enterprises (SMEs).
Are high-street banks regulated?
Yes, high-street banks are regulated by financial authorities in their respective countries. For example, in the UK, high-street banks are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Related Terms with Definitions
- Retail Banking: Banking services geared towards individual customers, including deposit accounts, mortgages, personal loans, and credit cards.
- Commercial Bank: A bank that offers banking services to individual consumers, businesses, and governments. High-street banks fall under this category.
- Savings Account: A deposit account held at a bank that pays interest on the money deposited.
- Checking Account: A deposit account that allows withdrawals and deposits, typically used for daily transactions.
- Mortgage: A loan secured by real property, usually used to purchase a home.
Online References to Online Resources
- Investopedia: Retail Banking
- Financial Conduct Authority (FCA)
- Prudential Regulation Authority (PRA)
Suggested Books for Further Studies
- The Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin
- Bank Management & Financial Services by Peter S. Rose and Sylvia C. Hudgins
- Operations in Financial Services by Katherine Cox
Accounting Basics: High-Street Bank Fundamentals Quiz
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