Definitions of Different Types of Banks at

Learn of the many different types of banks in operation today serving customers the world over with various banking services. While there may be some degree of similarity in services, their functions are markedly different. See some of the prominent ones listed below. Follow a link to learn more.

Different Banking Types

Commercial banking involves the acceptance of deposits, the making of loans, foreign exchange, bill finance, investment management and more to customers. Today, a commercial bank provides credit cards, savings accounts and financial services to their customers.

Corporate banking has to do with the providing of service to corporate clients separate from retail banking services.

International banks (also called overseas or foreign banks) have their head-quarters in one counter but conduct much of their business in other parts of the world.

Investment banks handle securities business for their customers for which they receive commissions. Investment banks provide a wide range of services to customers.

Merchant banks deals with the trading of shares issues by companies such as initial public offering.

Offshore banking involves the holding of accounts for companies conducting business outside of the country where the bank is registered.

Retail banks provide services such as credit and debit cards, loans, savings accounts, etc., personally and directly to their customers.

Other financial institutions include trustee savings banks, national banks, central banks and credit unions. These simple accept the deposits of private individuals and pay interest on them. Others are overseas and foreign banks. Overseas banks have their head offices at home but conduct much of their business in other parts of the world. Additionally, there are consortium banks. A consortium bank is one whose share capital is owned by several other banks, often in various parts of the world, with the intention of being able to serve the needs of the multi-national customer. Each financial institution, including the commercial banks, operating in the banking system do so usually under the oversight of the central bank.

General Banking Functions

Banking is concerned with the acceptance of money on deposit and the use of that money to offer other services to bank customers. It also involves the investing of money in a variety. These services produce an income to the bank concerned. Some other functions of banks have been listed above, however you can read more details on the respective pages. You will find all of them here at Just follow a link to learn more.

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