Different Types of Banking | Definitions | Ymhbanking.com

Learn of the many different types of banking including corporate, international, offshore and more that serve customers the world over.

People discussing the different types of bankingWhile there may be some degree of similarity in services, their functions are markedly different. See some of the prominent ones including commercial banks listed below. Follow a link to learn more.

 

 

 

 

Listing of the Different Types of Banking:




Commercial banking definition given by a bankerCommercial 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 definition explained to customer seeking to open an accountCorporate banking has to do with the providing of service to corporate clients separate from retail banking.

 

 

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

 

 

Merchant banking and functions of merchant banksMerchant banks deals with the trading of shares issues by companies such as initial public offering.

 

 

Manager giving a clear offshore banking definitionOffshore banking involves the holding of accounts for companies conducting business outside of the country where the bank is registered.

 

 

Retail BankingRetail banks provide services such as credit and debit cards, loans, savings accounts, etc., personally and directly to their customers. There are usually private sector entities.

 

Other financial institutions include trustee savings banks, national banks, central banks and credit unions. There are also co-operative banks. 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. Those that in the UK come under the supervision of the central bank of England.

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 ymhbanking.com. Just follow a link to learn more.

Helpful Links:

A high-risk small business loan is a loan to a company with poor or no credit. There are a variety of factors that determine the issuance of a loan. Click here for more information.