Types of Banks

Date: 2015-10-07; view: 391.

A bank isan institution that deals in money and provides other financial services. Banks arc at the heart of any financial system.

Bankingis the business a bank is engaged in.

There exist different types of banks but their names may vary from one country to another.

Central bankssuch as the National Bank (Ukraine), the Bank of i England (UK) or the Federal Reserve System(US) look after the government's finance and monetary policy, act as bankers for the state and for commercial banks, manage a country's reserves of gold and foreign currencies, and are responsible for issuing banknotes.

Commercial banksdeal directly with the public. They offer a wide range of services such as accepting deposits, making loans and managing customers' accounts.The aim of commercial banks is to earn profit.

Merchant banksdon't deal with the public. They provide services for companies. They specialize in raising capital for industry, arranging flotations, takeovers and mergers, and investment portfolios.

Investment banksare firms that control the issue of new securities (shares and bonds).

Savings banksare financial institutions that specialize in providing services such as savings accountsas opposed to general banking services.