Regional check clearinghouses also exist to speed up local check processing. The Fed also acts as a bank's bank. As a last resort, financial institutions can borrow money from the Fed just like we borrow money from commercial banks. There are many different types of financial institutions regulated by the Fed. Three of the major forms of banking institutions are commercial banks , savings and loan associations , and credit unions .
Commercial banks are open to anyone and typically focus on loans and checking accounts.
The other two banking institutions once focused on savings accounts and long-term loans but deregulation has caused them to expand their services. Credit unions limit their membership to people that have some commonality, e.g. people in a certain profession, people that live in a certain area, etc. Credit unions typically give members better rates than banks because unions are collectively owned by the depositors. Non-banking financial institutions don't offer deposits as such. Most specialize in loans or money management for their investors.