Types of Banks

Perhaps you may have heard about different models of banking and types of banks. Investment banks, retail banks, commercial banks, online banks, etc.
Do you know difference between the banks?

Some types of banks include:

  • Central banks
  • Retail banks
  • Commercial banks
  • Investment banks
  • Online banks
  • Private banks

What is the Central Bank?

The Central Bank is an organization that is responsible for the performance of other banks, all countries have central banks.

Most of them have same rules and major activities, include:

  • Obtain the nation’s monetary policy
  • Conduct laws and supervising the monetary
  • Determine the current rate of inflation, interest rates, etc.
  • Printing notes
  • Maintain the value of the currency and equality with other international currencies.

Most people do not communicate directly with the central bank, but associated with it indirectly through other banks.

What is a Retail Bank?

Retail bank contact with public and provide banking services for customers. Some of the public activities of Retail Bank includes:

  • Savings and current accounts
  • Certificate of Deposit
  • Short-term loans
  • Facilitate the purchase of cars and machines
  • Safe box, etc.

Retail banks are the banks that we are in contact with them daily.

What is a Commercial Bank?

Commercial Banks are linked with companies and  meet their needs .
services are include:

  • Basicaccountssuch assavingsandcurrent
  • Facility
  • Credit Line
  • Bank guarantee
  • Safe box
  • International payments
  • Foreign Exchange Services

What is an Investment Bank?

Investment banks help enterprises to enter the capital market. For example, When a company wants increase their money by buying stocks, they can use the services of this bank.

It can also assist companies in the field of mergers or split up into several sections with each other.

These banks are not active on customers savings accounts.

  • Opening accounts
  • Investment
  • Transfer funds between accounts
  • Payment of bills
  • purchase certificates of deposit investment
  • Request Facility

What is an Online Bank?

The banks allow you to do your banking via the Internet. Because the cost of banking services is lower, banks offer loans with low rates and give more profit to deposits. Most of these bank’s services include:

  • Opening accounts
  • Investment
  • Transfer funds between accounts
  • Payment of bills
  • purchase certificates of deposit investment
  • Request Facility

Private banking

This banking contains all the investment and financial services that is provided to individuals and private, and for private affairs such as inheritance monitoring and also help customers to pay less tax.

Most of the bank’s operations done privately and for special people and less publicly.

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