Classification of banks

• Eight major types of financial institutions provide various services from mortgage loans to investment vehicles. • Financial institutions help regulate the economy, ensure fair financial practices, and facilitate prosperity. • The major categories of financial institutions are central banks, retail and commercial banks, internet banks, credit unions, savings and loan (S&L) associations, investment banks and companies, brokerage firms, insurance companies, and mortgage companies. Within a capitalistic economic system, financial institutions help regulate the economy, ensure fair financial practices, and facilitate prosperity. There is no hard and fast list of types of financial institutions. Title 31 of the U.S. Code lists 31 types, while industry sources list a lot fewer. But for most consumers and investors, these are the most important financial institutions to know about. Historically, credit unions used to serve a specific and shared demographic group, also known as the field of membership. The commonality might be based on employer, a geographic area, or membership in another type of group. Today, many have loosened membership restrictions and are open to the general public with minimal requirements, such as joining a nonprofit organization for a small fee. Banks make money by charging a variety of fees and by earning interest from loans such as mortgages, auto loans, business loans, and personal loans. The bank pays depositors interest for using money to make those...

What are the 4 types of banks? The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks.You can read about the Apart from the above mentioned banks, the other different types of banks are payment banks, small finance banks, local area banks, and specialized banks. Further readings: • • Related Links

Classification of Banks A A bank can be classified in different ways. The classification of banks from all categories is given followings: Types of Banks: Types of Bank on the Basis of Ownership: The banks are classified on the basis of ownership into two categories. • Public Sector Banks: The banks owned and controlled by the Government are called Public sector bank, • Private Sector Banks: The banks owned by corporations are called private sector banks. Types of Bank on the Basis of Domicile: The banks are classified on the basis of domicile into two categories. • Domestic Banks: The banks registered and incorporated within the country are called domestic banks. • Foreign Banks: The banks which have their origin and head offices in the foreign countries are called foreign banks. Types of bank on the Basis of Function: The banks are classified on the basis of function into the following categories. (1) Central Bank: Central Bank is the bank of banks. Every civilized country now has its own central bank. The primary function of the central bank is to regulate the flow of money and credit in order to promote efficiency, stability and growth in the country. (2) Commercial Banks: Commercial banks are those banks which are engaged in performing the routine duties of banking business. They collect surplus money and make loans and advances in the form of overdrafts cash credit and discounting bills of exchange. They also provide special financial services and agency services. Co...

Types of Banks: Different Banks & their Classifications (Global) The banking industry caters to various sections of society thus the focus of banking becomes varied, catering to the diverse needs of clients through different products, services, and methods. To meet this, we need distinctive kinds of banks addressing complex business & social needs. In this article, we will explain various types of banking institutions ranging from retail banks, commercial banks, co-operative banks, investment banks, central banks to various other types of specialized banks. The focus of banking is varied, the needs diverse and methods different. Banking institutions offer an assortment of services from deposits in savings accounts to housing and business loans to check clearing, underwriting, and credit cards. The world is fast-changing and globalization in conjunction with technological advances is changing the landscape of the banking industry. Both individuals and business customers are demanding faster and innovative products & services. The banking industry is also heavily regulated and has its own share of challenges to deliver financial objectives to people and organizations. Thus, distinctive kinds of banks are evolving to cater to various business demands, social needs, and global complexities. These different banking institutions conduct their operations in a different manner. However, on the basis of their functions, clientele served and products or services offered, we can clas...