In the United States, the banking industry exists in three main sectors: the central bank, commercial banks and investment banks. Each sector deals with its own aspect of finance, and each requires the services of highly skilled and experienced executives to make sound investment, lending and borrowing decisions to maintain financial stability. These executives typically earn high salaries.
Central Bank
The central bank of the United States is called the Federal Reserve System. This bank oversees monetary policy and regulates private banking institutions to ensure they remain stable, viable and ethical. Federal Reserve executives comprise a small portion of the total number of executives in the United States, but they enjoy the highest average salary: $237,590 per year, according to the Bureau of Labor Statistics.
Commercial and Investment Banks
Commercial -- or retail -- banks are the banks the average consumer is most familiar with. They offer mortgage loans, vehicle loans, business loans, credit cards and various investment instruments. Investment banks facilitate the issuance of investment securities such as stocks and bonds. The executives of these banks make slightly less than central bank executives. As of 2010, the Bureau of Labor Statistics reports executives of firms that engage in the brokerage of securities and commodities, which is what investment banks do, make an average of $224,200 per year. Executives of firms that engage in other investment activities make $224,810 per year.
General Managers
A general manager or operational manager in an organization might be the same person as the chief executive, or he might not be. For this reason, the Bureau of Labor Statistics distinguishes between chief executives and general or operational managers. As of 2010, the bureau reports Federal Reserve general managers make an average salary of $170,350 per year. General managers at security and commodity brokerage firms make an average salary of $169,080 per year.
Independent Loan Brokers
Banks employ loan officers to help potential borrowers to apply for a loan. According to the Bureau of Labor Statistics, such employees earn a mean annual wage of $65,900. However, lenders sometimes work through independent loan brokers to find viable lending opportunities. Such loan brokers might represent multiple lenders, essentially standing as the executive of their own companies and profiting by collecting a percentage of every loan they originate. These professionals might sometimes make salaries comparable to what executives of large banks make.
