The term "financial institution" covers a lot, encompassing commercial banks, savings and loan associations, and credit unions. What exactly do each of these entities do, and how do they differ? That's what we'll talk about in this course, covering the basics of each. Financial laws constantly change, so if you work in or with a financial institution, it's essential to stay apprised of these regulatory changes.

We know that banks are regulated by the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of Currency, but do you know why banks are regulated? There are four main reasons for banking regulations, and we'll talk about that here in this program. We'll also discuss the four entities that share the various regulatory duties for commercial banks. Lastly, we'll go over the process of evaluating the financial performance of commercial banks.

Commercial banks are the most diversified of our nation's depository institutions. This is because they have the broadest asset and liability powers among the different types of depositories. Generally, the larger the bank, the more diversified their asset and liability structure. In this course, we'll discuss the types of assets banks may hold, and why. We'll go over bank lending practices with commercial and industrial firms and the various types of business and consumer loans banks can offer. We'll talk about bank liabilities and capital, as well as capital requirements. Lastly, we'll go over asset and liability structures.

Comprehending percentages and interest rates is essential to working in the banking industry, so this course is designed to help learners get a better understanding of these concepts. We'll define and discuss percentages and how to calculate them. We'll talk about basis points and yield differentials. Then, we'll cover interest. We'll define simple and compound interest and go over how to make these calculations.