Different Types of Banking is the term bank originally referred to an individual or an organization. Who or which exchanging one currency for another. But now-a-days a bank refers to an institution in which people keep their cash balance in the form of deposits. Prof Sayers gives a clear definition of bank as ” Bank are the institution whose debts usually referred to as bank deposits are commonly accepted in final settlement of other peoples debts” On the basis of above discussion, We may say that bank is an institution which deals in money and credit.
The banking institution may be classified into the following types on the basis of their functions.
- Commerce Banks: Commercial banks are those banks deposits from the public and public and grant-term loans and advances to its customers.
- Industrial Banks: Industrial banks are those that finance industries either by granting loans for long or by subscribing shares.
- Exchange Bank: The exchange banks are banking institution, which finance foreign trade and deals in foreign currency.
- Land Mortgage Banks: These banks grant long term loans against agriculture and urban properties.
- Cooperative Banks: Cooperative banks are primarily intended to help agriculturists by providing loans at low rates of interest and on easy terms.
- Central Banks: The central bank of a country is an institution, which acts as the leader of the banking system and the money market. It regulates money and credits in close cooperation with the government.
Types of bank the basis structure
- Branch Banking: Branch banking system is the system is the system of banking which controls and maintains many branches either the inside the country or in aboard. The branches are only the agents of any particular bank.
- Unit Banking: The unit banking system is the unit or single office bank serving its small local community.
- Investment Banking: The bank which earns profit by vesting money in various institutions is known as investment bank.
- Grammeen bank: Grammeen bank is the bank which deals with village people; It gives loans with to the village people without any security. It helps the village people by giving loans with short condition. This institution promotes micro-credit in Bangladesh and in the world.