 |
To maximize stockholder value — customers are the raw materials banks use to earn money for stockholders |
To meet the financial needs of their
members |
 |
Are owned and operated solely for the
benefit of stockholders — stockholders do not even have to be customers of the bank |
Are collectively owned by their members (customers) |
 |
Have paid directors elected by and
accountable only to stockholders —
directors are often major stockholders
who personally benefit from profits |
Have unpaid volunteers elected by and accountable to members |
 |
Are motivated by profit measured by
earnings per share on their stock — banks must take a short-term focus to ensure quarterly results are satisfactory |
Are not-for-profit institutions motivated by service to members — success is measured by the value they return to the membership |
 |
National banks serve many states, and communities (e.g., the largest banks in Fort Wayne are run by organizations located in New York, San Francisco, and Pittsburgh) |
Are typically focused on the needs of one designated community — Three Rivers serves the Fort Wayne area, plus small segments of two counties in northwest Ohio acquired via merger |
 |
Are permitted to serve whatever locations and markets they choose
Have extensive powers to serve commercial businesses
Are permitted to hold more complex, risky, and exotic investments |
Serve only approved communities,
employers, or organizations
Are by regulation overwhelmingly focused on serving people
Are limited to more conservative investment portfolios |
