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There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank. Commercial banks are mainly concerned with managing withdrawals and deposits as well as supplying short-term loans to individuals and small businesses. Consumers primarily use these banks for basic checking and savings accounts, certificates of deposit and sometimes for home mortgages. Investment banks focus on providing services such as underwriting and corporate reorganization to institutional clients. While many banks have a brick-and-mortar and online presence, some banks have only an online presence. Online-only banks often offer consumers higher interest rates and lower fees. Convenience, interest rates and fees are the driving factors in consumers' decisions of which bank to do business with. As an alternative to banks, consumers can opt to use a credit union. Banking company is defined as a company which transacts the business of banking in India as per the banking Act 1949. Banking is defined as 'accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able, by cheque, draft, and order or otherwise. 'Banks are defined as the financial institution or intermediary which helps in performing the banking activities. The different types if banking that takes place all over the world are: 1. Retail banking Typical mass-market banking in which individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs). services as possible on behalf of retail clients. Some retail banks have even made a push into investment services such as wealth management, brokerage accounts, private banking and retirement planning. While some of these ancillary services are outsourced to third parties (often for regulatory reasons), they often intertwine with core retail banking accounts like checking and savings to allow for easier transfers and maintenance. The products that are offered by the retail banks are: Current accounts Savings accounts Debit cards ATM cards Credit cards Cheque Mortgages Home equity loans
Offshore banks which are located in jurisdictions with low taxation and regulation Savings banks accept savings deposits. Postal savings banks are savings banks associated with national postal systems Community development banks are the banks that provide financial services and credit to under-served markets or populations. . 2. Wholesale banking Banking services between merchant banks and other financial institutions. Some retail banking covers business transactions but not in the same scale as wholesale banking. working capital financing and large trade transactions. on a per dollar basis. where as retail banking would focus more on the individual or smaller business. Wholesale banking deals with larger institutions. think of it like the discount superstore that deals in such large amounts that they can offer special prices or reduced fees. The products that are offered in whole sale banking are: Trade Finance products Cash Management Products Treasury Products Bridge Loans Syndicated Loans Infrastructure Loans Cross Currency/Interest Rate Swaps Foreign Currency Loans and many more depending upon the needs of the Corporates. Some services might include currency conversion. Personal loans Time deposits/Term deposits Recurring deposits The different types of retail banks are as follows: Private Banks which deals with assets of high net worth individuals provides wealth management and portfolio management services to them. This type of banking will provide services to other banks or large corporations.
Central banks have a wide range of responsibilities. payment processing. The main tasks of the Federal Reserve are to supervise and regulate banks. Proponents of universal banking argue that it helps banks better diversify risk. low inflation and full employment.S. it does not require them to do so. however. Their knowledge in international finances make merchant banks specialists in dealing with multinational corporations. Treasury bonds and steer interest rates. oversee commercial banks. Investment banks also aid in the sale of securities in some instances. banks are required to separate their commercial and investment banking services. Cooperative societies . loans. 4. regulate the credit system. They can also trade securities for their own accounts. Investment banking A specific division of banking related to the creation of capital for other companies. The main difference between investment banking and merchant banking is that it does not deal with trading. Investment banks also provide guidance to issuers regarding the issue and placement of stock. securities transactions. Detractors think dividing up banks' operations is a less risky strategy. underwriting and financial analysis. Central banks also generally issue currency. 5. Universal banks may offer credit. 6. long-term loans for companies and underwriting. function as the bank of the government. including both commercial and investment services. reorganizations and broker trades for both institutions and private investors. from overseeing monetary policy to implementing specific goals such as currency stability. which is composed of 12 regional Federal Reserve Banks located in major cities throughout the country.3. Merchant banking A bank that deals mostly in (but is not limited to) international finance. 7. asset management. including Switzerland. is known as the Federal Reserve System (commonly known as "the Fed"). Ben Bernanke currently serves as the chairman of the Board of Governors of the Federal Reserve. Banks in a universal system may still choose to specialize in a subset of banking services. In the United States. Universal banking is common in some European countries. implement monetary policy by buying and selling U. Universal banking A banking system in which banks provide a wide variety of financial services.S. They also help to facilitate mergers and acquisitions. deposits. The central banking system in the U. While a universal banking system allows banks to offer a multitude of services. manage exchange reserves and act as a lender of last resort. Merchant banks do not provide regular banking services to the general public. Investment banks underwrite new debt and equity securities for all types of corporations. investment advisory. Central banking The entity responsible for overseeing the monetary system for a nation (or group of nations).
The services that are extended through mobile banking are: Checking the statements Status on cheque Pin provision of ATM cards and credit cards Technical assistance through call centers Blockage of accounts . including accepting deposits (which is done online or through the mail). Collecting interest is not permitted under Islamic law. and the term includes the purchase and sale of a wide range of goods and services. paying interest on savings and providing an online bill payment system. but they make provisions for consumers to use ATMs at other banks and retail stores. are prohibited). email or online chat. As soon as you deposit funds into a credit union account. The Dubai Islamic Bank has the distinction of being the world's first full-fledged Islamic bank. Since this system of banking is grounded in Islamic principles. it could be said that financial transactions within Islamic banking are a culturally distinct form of ethical investing (for example. Internet banking The performance of banking activities via the Internet. These institutions are created and operated by its members and profits are shared amongst the owners. significantly. Online banks handle customer service tasks by phone. formed in 1975. 10. 8.Member-owned financial co-operative. Mobile commerce transactions continues to grow. online banks tend to offer consumers significant savings and pay higher interest rates. the prohibition of the collection and payment of interest. information delivery and so on. 9. Because of the reduced overhead costs associated with not having physical branches. Also known as m-commerce. pork. you become a partial owner and participate in the union's profitability. online banking. etc." A good online bank will offer customers just about every service traditionally available through a local branch. Mobile banking The use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Online banking is also known as "Internet banking" or "Web banking. and they may reimburse consumers for any associated fees. Islamic banking A banking system that is based on the principles of Islamic law (also known Shariah) and guided by Islamic economics. Therefore. all the undertakings of the banks follow Islamic morals. Two basic principles behind Islamic banking are the sharing of profit and loss and. Online banks cannot provide direct ATM access. bill payment. investments involving alcohol. Credit unions are formed by large corporations and organizations for their employees and members. gambling.
1 Signal 1.2 Multi-state 2.2.3 Foreign banks 1. industrial banks.1.2.1. Because of these exemptions.2.1.4 Regional rural banks 1. 12.S.2.2 Urban cooperative banks 1. Specialized banking Specialized banks are foreign exchange banks.S.2 scheduled cooperative banks 1.11. IBFs enable U. banks and U. International banking A facility that allows depository institutions in the United States to offer deposit and loan services to foreign residents and institutions. exportimport banks catering to specific needs of these unique activities.1.5 Other scheduled commerce banks 1. heavy projects and foreign trade activities.1 short term (state. Unscheduled banks . while being exempted from reserve requirements imposed by the Federal Reserve and some state and local income taxes. INDIAN BANKING INDUSTRY 1.1.1 SBI & Associates – Public sector banks 1.2 long term (SCARDBs & PCARDBs) 1.2.2 Nationalised banks (including IDBI) – Public sector banks 1.1 scheduled commerce banks 1. development banks.2. district and primary level cooperative banks) 1.1.1.-based financial institutions to compete more effectively for overseas deposits and loans business in the Eurocurrency markets. Scheduled banks 1. These banks provide financial aid to industries.1 Rural cooperative banks 1.2.2.