What Are Money-Center Banks?

By Kristi Waterworth – Updated Feb 26, 2025 at 1:46 PM

Key Points

Money-center banks manage large transactions for governments and corporations globally.
They offer services like corporate banking, investment advice, and securities trading.
Investors gain steady growth and dividends from these globally integral banks.

Many different types of banks operate in the modern economy, from small local banks to the biggest banks on the planet. Understanding the difference is important when you're making investment decisions. Money-center banks are just one type of bank that you may be considering buying shares of, but do you know what they are and what they do?

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Exterior of a bank building. — Image source: Getty Images.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool has a disclosure policy.