industrial bank is a limited service financial institution that raises funds by selling certificates called "investment shares" and by accepting deposits, and invests such funds in installment loans to consumers and to small businesses. Often such loans are secured by a third party who signs a co-maker note pledging to repay the loan if the borrower defaults, or the loan is secured by a chattel mortgage. Industrial banks are sometimes called Morris Plan banks or industrial loan companies. Industrial banks are distinguished from commercial loan companies because industrial banks accept deposits in addition to making consumer loans. Industrial banks are distinguished from commercial banks because industrial banks do not offer demand deposit (checking) accounts.
| APA | Barry Goldsmith. (2010). industrial bank. Retrieved September 29, 2026, from http://smartdefine.org/industrial_bank/definitions/1156017 |
| Chicago | Barry Goldsmith. 2010. "industrial bank" http://smartdefine.org/industrial_bank/definitions/1156017 (accessed September 29, 2026). |
| Harvard | Barry Goldsmith 2010, industrial bank, Smart Define, viewed 29 September, 2026, <http://smartdefine.org/industrial_bank/definitions/1156017>. |
| MLA | Barry Goldsmith. "industrial bank" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/industrial_bank/definitions/1156017> |