Nonbank banks

Nonbank banks, also called limited-service banks, offer some but not all of the services of a traditional commercial bank.

They're typically owned by companies, including insurance companies, brokerage firms, and retail stores to provide financial services without being limited by the regulations that govern traditional banks, such as restrictions on interstate and branch banking.

Many nonbank banks are insured by the Federal Deposit Insurance Corporation (FDIC). Those banks are subject to the same reserve requirements and examinations as regular banks.

Opponents of nonbank banks believe they drain financial resources away from small towns to big cities in other states and undermine the nation's decentralized banking system.