FINA 464 Project Assignment

North American Industry Classification System (NAICS)—U.S. Census Bureau

https://www.census.gov/naics/

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Commercial Banking

          NAICS code: 522110

                    Commercial banks

                    National commercial banks

                    State commercial

2022 NAICS Definition

T = Canadian, Mexican, and United States industries are comparable.

522110 Commercial Banking

This industry comprises establishments primarily engaged in accepting demand and other deposits and making commercial, industrial, and consumer loans. Commercial banks and branches of foreign banks are included in this industry.

Cross-References.

• Establishments primarily engaged in credit card banking are classified in Industry 522210, Credit Card Issuing;
• Establishments known as industrial banks and primarily engaged in accepting deposits are classified in Industry 522180, Savings Institutions and Other Depository Credit Intermediation; and
• Establishments of depository institutions primarily engaged in trust activities are classified in U.S. Industry 523991, Trust, Fiduciary, and Custody Activities.

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Credit Unions

          NAICS code: 522130

                    Corporate credit unions

                    Federal credit unions

                    State credit unions

T = Canadian, Mexican, and United States industries are comparable.

522130 Credit Unions

This industry comprises establishments primarily engaged in accepting members' share deposits in cooperatives that are organized to offer consumer loans to their members.

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Savings Institutions and Other Depository Credit Intermediation

          NAICS code: 522180

T = Canadian, Mexican, and United States industries are comparable.

522180 Savings Institutions and Other Depository Credit Intermediation

This industry comprises establishments primarily engaged in accepting deposits, making mortgage, real estate, and other consumer and commercial loans, and investing in high-grade securities (except commercial banking and credit unions). Savings and loan associations, savings banks, private banks (i.e., unincorporated banks), and establishments known as industrial banks or Morris Plans and primarily engaged in accepting deposits are included in this industry.

Cross-References. Establishments primarily engaged in—

• Accepting demand and other deposits and making all types of loans—are classified in Industry 522110, Commercial Bankings;
• Accepting members’ share deposits in cooperatives—are classified in Industry 522130, Credit Unions; and
• Buying, pooling, and repackaging loans for sale to others on he secondary market and establishments known as industrial banks and Morris Plans and primarily engaged in providing nondepository credit—are classified in U.S. Industry 522299, International, Secondary Market, and All Other Nondepository Credit Intermediation.

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Investment Banking and Securities Intermediation

          NAICS code: 523150

T = Canadian, Mexican, and United States industries are comparable.

523150 Investment Banking and Securities Intermediation

This industry comprises establishments primarily engaged in underwriting, originating, and/or maintaining markets for issues of securities, or acting as agents (i.e., brokers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis. Investment bankers act as principals (i.e., investors who buy or sell on their own account) in firm commitment transactions or act as agents in best effort and standby commitments. This industry also includes establishments acting as principals in buying or selling securities generally on a spread basis, such as securities dealers or stock option dealers.

Illustrative Examples:

Bond dealing (i.e., acting as a principal in dealing securities to investors)
Mutual fund agencies (i.e., brokerages)
Securities brokerages
Securities underwriting
Stock brokerages
Stock options dealing

Cross-References.

• Investment clubs or individual investors primarily engaged in buying or selling financial contracts (e.g., securities) on their own account are classified in Industry 523910, Miscellaneous Intermediation; and
• Establishments primarily engaged in accepting deposits and lending funds from these deposits are classified in Industry Group 5221, Depository Credit Intermediation.

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Direct Property and Casualty Insurance Carriers

          NAICS code: 524126

T = Canadian, Mexican, and United States industries are comparable.

524126 Direct Property and Casualty Insurance Carriers

This U.S. industry comprises establishments primarily engaged in initially underwriting (i.e., assuming the risk and assigning premiums) insurance policies that protect policyholders against losses that may occur as a result of property damage or liability.

Illustrative Examples:

Automobile insurance carriers, direct
Malpractice insurance carriers, direct
Fidelity insurance carriers, direct
Mortgage guaranty insurance carriers, direct
Homeowners' insurance carriers, direct
Surety insurance carriers, direct
Liability insurance carriers, direct

Cross-References.

• Establishments primarily engaged in reinsuring property and casualty insurance policies are classified in Industry 524130, Reinsurance Carriers.

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Direct Life Insurance Carriers

          NAICS code: 524113

                    Credit life insurance carriers, direct

                    Savings bank life insurance carriers, direct

T = Canadian, Mexican, and United States industries are comparable.

524113 Direct Life Insurance Carriers

This U.S. industry comprises establishments primarily engaged in initially underwriting (i.e., assuming the risk and assigning premiums) annuities and life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies.

Cross-References.

• Establishments primarily engaged in reinsuring life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies are classified in Industry 524130, Reinsurance Carriers; and
• Legal entities (i.e., funds, plans, and/or programs) organized to provide insurance and employee benefits exclusively for the sponsor, firm, or its employees or members are classified in Industry Group 5251, Insurance and Employee Benefit Funds.

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Open-Ended Investment Funds

          NAICS code: 525910

                    Money market mutual funds, open-ended

                    Mutual funds, open-ended

T = Canadian, Mexican, and United States industries are comparable.

525910 Open-End Investment Funds

This industry comprises legal entities (i.e., open-end investment funds) organized to pool assets that consist of securities or other financial instruments. Shares in these pools are offered to the public in an initial offering with additional shares offered continuously and perpetually and redeemed at a specific price determined by the net asset value.

Illustrative Examples:

Investment funds, open-ended
Money market mutual funds, open-ended

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Portfolio Management and Investment Advice

          NAICS code: 523940

T = Canadian, Mexican, and United States industries are comparable.

523940 Portfolio Management and Investment Advice

This industry comprises establishments primarily engaged in managing the portfolio assets (i.e., funds) of others on a fee or commission basis and/or providing customized investment advice to clients on a fee basis. Establishments providing portfolio management have the authority to make investment decisions, and they derive fees based on the size and/or overall performance of the portfolio. Establishments providing investment advice provide financial planning advice and investment counseling to meet the goals and needs of specific clients, but do not have the authority to execute trades.

Illustrative Examples:

Financial planning services, customized, fees paid by client
Investment advisory services, customized, fees paid by client
Managing trusts
Portfolio fund managing

Cross-References.

• Establishment primarily engaged in investment banking, securities intermediation, and commodity contracts intermediation are classified in Industry Group 5231, Securities and Commodity Contracts Intermediation and Brokerage;
• Establishments primarily engage in acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying or selling financial contracts are classified in Industry 523910, Miscellaneous Intermediation;
• Establishments primarily engaged in administering personal estates are classified in U.S. Industry 523991, Trust, Fiduciary, and Custody Activities;
• Legal entities (i.e., trust, estates, or agency accounts) administered on behalf of the beneficiaries under the terms of a trust agreement, will, or agency agreement are classified in Industry 525920, Trust, Estates, and Agency Accounts;
• Establishments providing investment advice in conjunction with their primary activity, such as the sale of stocks, bonds, annuities, and real estate, are classified according to their primary activity; and
• Establishment known as publishers providing generalized investment information to subscribers are classified in Subsector 513, Publishing Industries.

NOTE: Hedge funds are a sub-category of 523940

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Miscellaneous Intermediation

          NAICS code: 523910

                    Venture capital companies

T = Canadian, Mexican, and United States industries are comparable.

523910 Miscellaneous Intermediation

This industry comprises establishments primarily engaged in acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying or selling financial contracts generally on a spread basis. Principals are investors that buy or sell for their own account.

Illustrative Examples:

Investment clubs
Tax liens dealing (i.e., acting as a principal in dealing tax liens to investors)
Venture capital companies
Mineral royalties or leases dealing (i.e., acting as a principal in dealing royalties or leases to investors)

Cross-References. Establishments primarily engaged in—

• Investment banking, securities dealing, securities brokering, commodity contracts dealing, or commodity contracts brokering—are classified in Industry Group 5231, Securities and Commodity Contracts Intermediation and Brokerage; and
• Managing the portfolio assets (i.e., funds) of others and/or providing customized investment advice—are classified in Industry 523940, Portfolio Management and Investment Advice.