Money center bank

MONEY CENTER BANK
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(05, April 2011)
Money Center Bank
The essay is a critical examination of differences between money center banks and other banks which include small banks, community banks, regional banks as well as foreign ones that do business in the United States of America. The size of the bank is also clearly stated; it has a very large balance sheet, much larger than even a mid-sized regional bank. Money center banks refers to larger banks in certain major financial center that borrow from and lend to governments, corporations and other financial institutions particularly banks instead of consumers. It is apparent that money center banks are distinct from other set of banks in terms of services they provide, market area, customers, size and advantages. Examples of money center banks include such organizations as Citibank, J P Morgan Chase, and Bank of America
In terms of market area, money center bank has a wider market area, typically in the entire globe. To do this successfully, it has to develop as well as maintain their presence in the international arena of business. Creation of new branches as well as offices that represent such an entity has been put in place in certain chosen locations. On the other hand, federal banks, regional as well as community usually operate within in a restricted jurisdiction probably within a state or county (Chen, 2006). In terms of the advantage the bank has over others such as community and federal banks as they can provide financial support to very huge projects of all kinds as well as having the accommodating corporate customer’s aspirations and needs in terms of variety of business transactions.
According to Chen, 2006 another area where there is distinct differences between money center banks and the rest of banks rest on the target customers. While money center banks transact business with the biggest business entities in the world such as coca cola, it also deals with smaller organizations that are in need of services from a bank that has the potential of covering international arena. It is worth noting that among other customers of the bank are national governments as well as financial institutions such as banks. On the other hand, community banks, federal banks and regional banks deal with customers’ living only within their market area. Additionally, county governments, local offices corporations as well another small organization are major customers of these banks.
The kind of services although almost similar with those of other financial institutions, money center banks have certain distinguishable characteristics. For instance, the bank routinely offers the following services; loans and credit facilities of all kinds, trust services, investments and international services globally. Additionally, the bank actively engages in loans and credit facilities of all kinds, trust services, investments and international s...