Banks between individuals, although as such there are no people who call them that way.
We say that they do not exist because from the legal point of view a bank is only one considered as such by the BDE (Bank of United States)
Therefore banks between individuals is a wrong term and therefore does not discover anything.
Banks between individuals Why do people call them this way?
In our opinion, it is because they are looking for financial entities that are the most similar to banks but that are managed by private capital.
That is, they have to be companies or entities whose capital comes from somewhere else and not from the banking system.
As such these entities do not exist, at least in the form of banks.
What if there is also the main financial alternative to banks are private finance companies .
These entities are the closest thing to private banks as they are entities dedicated to signing loans through private equity loans .
It should also be noted that private capital entities in no case capture savings, that is, their management is not like banks.
Said companies are limited to signing private loans with and without collateral, usually through lenders and other savers.
The people who lend the money are usually savers who have capital or money that they are willing to lend in exchange for a benefit.
These people are called in many ways, although in the sector the common is private investors or money lenders .
Their work is essential in the signing of these loans between people as they are the investing party, that is, those who lend the money.
You will seldom see the financial intermediary being the one who lends the money.
Normal if you think about it when one of these businesses can carry out dozens of operations a year not having enough capital to be able to sign the operations.
No single company, no matter how large, is capable of handling all loan applications on its own.
That is the reason why all private equity companies have these investors as support in signing loans.
Private banks Are they the same as these private banks?
They are not the same, in fact private banks commonly known as Private Banking is a section of the banking system focused on wealth management.
Private banking as such does not carry out the same procedures that a traditional bank would carry out.
Quite the opposite, in fact, it is focused on attracting investment by offering different types of investment to its clients.
This type of bank was created to manage large assets above all (from € 500,000) and is not intended for small savers.
Neither through this Private Bank it is possible to process loans since their procedures will be very different.
Conclusion about Private Banks
We can say that as such they do not really exist, being private equity companies specialized in loans between individuals.
They cannot exist since they cannot include the word bank at any time if they are not seen in this way by the Bank of United States.
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