Banks settle payment transactions efficiently by debiting the accounts of the depository institutions making payments and by crediting the accounts of depository institutions receiving payments.
Multiple group credit unions could extend their membership to persons and organizations located within areas underserved by other depository institutions.
These branches provide cash to banks, savings and loans, and other depository institutions; transfer money electronically; and clear millions of checks.
For depository institutions, they maintain accounts and provide various payment services, including collecting checks, electronically transferring funds, and distributing and receiving currency and coin.
Transactions in the federal funds market enable depository institutions with reserve balances in excess of reserve requirements to lend reserves to institutions with reserve deficiencies.