TYPES OF BANK
BANKING ORGANIZATIONS
BANKING
• Banking means the accepting, for the
purpose of lending or investment, of
deposits of money from the public,
repayable on demand or otherwise, ad
withdraw able by cheques, drafts, order or
otherwise.
TYPES OF BANK
• Classification on the Basis of Function
• Classification on the Basis of Ownership
• Classification on the Basis of Domicile
Classification on the Basis of
Function
1.
2.
3.
4.
5.
6.
Central Bank
Commercial Bank
Exchange Bank
Saving Bank
Agricultural Bank
Industrial Bank
1. Central Bank
The function of the central bank is to regulate the flow of
money and credit in order to promote efficiency, stability
& growth in the country.
2. Commercial Bank
The commercial banks have been the most effective
mobilizes of savings & have been providing working
capital to trade, commerce & industry.
3. Exchange Bank
The exchange banks mainly deal with international
trade.
4. Saving Bank
The saving banks collects ad keep the small savings of
public.
5. Agricultural Bank
The agricultural banks are set up to provide financial
assistance to the agriculturists
6. Industrial Bank
The industrial bank provide short, medium, and long
term credit to the industries.
Classification on the Basis of Ownership
• Public Sector Bank
– The are owed & controlled y the Govt. e.g. National
Bank
• Private Sector Bank
– These are owed y private corporations such as HBL,
ABL, MCB etc…
• Cooperative Bank
– Cooperative are a integral part of the cooperative
movement which aims at the promotion of thrift, selfhelp & mutual aid amongst agriculturists & others with
common economic needs so as to bring about better
living, better business & better methods of production
etc.
Classification on the Basis of Domicile
• Domestic Bank
– Registered ad incorporated within the country
– E.g.
• Foreign Bank
– Which have their origin & head offices in the
foreign country
– E.g.