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TeachMeFinance.com - explain industrial bank industrial bank -- 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. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.