Types of banks
type of banks
TYPES OF BANKS
1)Central Bank
Center bank is the apex bank of the banking structure of a country. It plays an important role in a country's monetary and banking system. The main function of this bank is to maintain economic stability of a country and in reference to the underdeveloped countries; its main function is to bring economic development. This bank issues currency , control other bank and works as a bank of the government. The Central bank provides guidance to other bank, whenever they face any problem. It is therefore known as the bankers bank.
In India, the reserve bank of India, The bank England and in America, The federal reserve bank are the central bank.
2)commercial bank
A bank which accept deposits, Grants loans and provides financial services to the customers with the intention of making profit is called a commercial bank.
The different types of commercial banks are explained below:
a) public sector banks
The bank in which majority of share capital is held by the government or RBI are called public sector banks. The state bank of India, Dena bank,Bank of Baroda, etc. are the examples of public sector banks.
b)private sector banks
The banks in which majority of the share capital is held by private individuals, are called private sector banks. Vyasa bank, bank of Rajasthan, industrial credit investment corporation of India (icic)Bank, etc. are the example of private sector banks.
c)Foreign banks
The banks which are registered and have their headquarters in foreign country but operate in different countries through their branches are called foreign banks. Standard chartered bank, American Express bank, Honking and Shanghai banking corporation (HSBC),etc. are the examples of foreign banks.
3)Development banks
The banks which provide medium and long term finance for purchase of machinery and equipment, latest technology and for expansion modernization of business are called development banks. These banks also undertake other development measures such as buying shares and debentures issued by companies, when their shares are not fully subscribed by the public. Industrial financial corporation of India (IFCI), state financial corporations (SFCS) are the examples of development banks.
4)c
TYPES OF BANKS
1)Central Bank
Center bank is the apex bank of the banking structure of a country. It plays an important role in a country's monetary and banking system. The main function of this bank is to maintain economic stability of a country and in reference to the underdeveloped countries; its main function is to bring economic development. This bank issues currency , control other bank and works as a bank of the government. The Central bank provides guidance to other bank, whenever they face any problem. It is therefore known as the bankers bank.
In India, the reserve bank of India, The bank England and in America, The federal reserve bank are the central bank.
2)commercial bank
A bank which accept deposits, Grants loans and provides financial services to the customers with the intention of making profit is called a commercial bank.
The different types of commercial banks are explained below:
a) public sector banks
The bank in which majority of share capital is held by the government or RBI are called public sector banks. The state bank of India, Dena bank,Bank of Baroda, etc. are the examples of public sector banks.
b)private sector banks
The banks in which majority of the share capital is held by private individuals, are called private sector banks. Vyasa bank, bank of Rajasthan, industrial credit investment corporation of India (icic)Bank, etc. are the example of private sector banks.
c)Foreign banks
The banks which are registered and have their headquarters in foreign country but operate in different countries through their branches are called foreign banks. Standard chartered bank, American Express bank, Honking and Shanghai banking corporation (HSBC),etc. are the examples of foreign banks.
3)Development banks
The banks which provide medium and long term finance for purchase of machinery and equipment, latest technology and for expansion modernization of business are called development banks. These banks also undertake other development measures such as buying shares and debentures issued by companies, when their shares are not fully subscribed by the public. Industrial financial corporation of India (IFCI), state financial corporations (SFCS) are the examples of development banks.
4)c
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