Bank

Bank is a financial institution which deals with money and credit. It acceptsdeposit and lends money to those
who are need of it

Characteristics of a bank
1.Dealing in money
2.Acceptance of deposit.
3.Giving loans.
4.Payment and withdrawal.
5.Individual, firm or company.
6.Agency and utility services.
7.Profit and service orientation.
8.Ever increasing function.

Types of Banks

1. Commercial banks
Commercial banks are those types of banks, which accepts deposit from public and lend money to trade and
commerce.
2. Agricultural banks
Agricultural banks are those banks which provides finance to agricultural purposes.
3. Local area banks
Local area banks are those banks which is established for the purpose ofmobilizing the rural savings by local
institution.
4. Savings bank
Saving banks are those specialized banks which mobilizes the savinghabits of the people.
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5. Industrial banks
Industrial banks are those banks which meets the requirements ofindustrial concerns. It is also known as
investment banks.

Functions of industrial banks

1.It accepts long term deposits.
2.It grants long term loans to industries.
3.It provides technical assistance to industries.
4.Advise given to government matters relating to industry.
5.It participates management in industrial concerns
.6. Exchange banksExchange banks are those banks which deals with foreign exchange andinternational trade.

Functions of exchange banks

1.Purchase and sale of foreign currencies, silver, gold etc...
2.They accept and collect foreign bills of exchange.
3.Purchase and discount export and import bills.
4.Transfer of money from one country to other
5.Issue letter of credit to importers.
7. Central banks
It is the highest banking and monetary institution of a country. It is theleader of the all-banking institution of a
country.
8. World bank
It is the financial institution which provides financial assistance to itsmember countries of the world.
9. New development bank BRICS
It is a multilateral development bank operated by BRICS states. (Brazil,Russia, India, China, South Africa).

Types of banking
1. Unit banking
Unit banking refers to a single, small bank that provide financial services to itslocal community.
2. Branch banking
Branch banking refers to a big bank which has number of branches in different part of the country.
3. Monopoly banking
It means a few big banks open branches in all part of the country.
4. Group banking
It is a type of multiple office banking consisting of two or more banks underthe control of a holding company.
5. Chain banking
It is a banking system where the same individual or group of individualscontrol two or more banks.
6. Mixed banking
Mixed banking is an approach where banks undertake both commercial andindustrial banking.
7. Correspondent banking
It refers to a financial institution that provides services to another one usuallyin another country.