Money-Center Banks
Money-Center Banks refer to large Financial Institutions that operate on a national and international scale, primarily in major cities. They are characterized by their ability to attract large deposits and provide a wide range of financial services, including commercial and investment banking. These banks are typically involved in various financial markets and have significant influence over Capital flows and Interest Rates.
Examples of Money-center banks include:
- JPMorgan Chase
- Bank of America
- CitiBank
- Wells Fargo
Cases of Money-center banks include:
- The 2008 financial crisis, where several Money-center banks received government bailouts due to their interconnectedness with the global economy.
- The role of Money-center banks in underwriting large corporate bond issuances, facilitating Mergers and Acquisitions, and providing Liquidity in financial markets.