TYPES OF BANKING SYSTEM

Banking
 BANKING SYSTEM

• A banking system is a group or network of institutions that provide

financial services for us. These institutions are responsible for
operating a payment system, providing loans, taking deposits, and
helping with investments.
 TYPES OF BANKING SYSTEM

• Group Banking
• Chain Banking
• Mixed Banking
• Branch Banking
• Unit Banking
 GROUP BANKING

• Group banking is a term that refers to a type of banking plan offered
to groups such as employees in a corporation of people instead of
individuals. Group banking can also refer to the control that a company
has over two or more financial institutions.
• An example in India is SBI which has many subsidiary banks such as State
Bank of Mysore, State Bank of Indore, State Bank of Hyderabad, State Bank of
Bikaner and Jaipur, State Bank of Patiala and State Bank of Travancore.
 CHAIN BANKING

• Chain banking is a form of bank governance that occurs when a small

group of people control at least three independently chartered banks. In
general, the controlling parties are majority shareholders or the heads of
interlocking directorates.
• It is not like branch banking or group banking because banks within such a
system are separately-owned and are not part of the same entity.
 MIXED BANKING

• The banking system that combines deposit banking with investment

banking is known as Mixed banking. ... Mixed banking system refers
to that banking system under which the commercial banks make
long term loans to industry.
• this type of banking promotes rapid industrialization, the mixed
banking system reduces the liquidity of funds of commercial banks.
 BRANCH BANKING

• Branch banking is a system of providing banking services through

different offices of a bank that acts as the head branch. The idea is to
expand the bank's business to cater to different locations and provide
services to all its customers.
 UNIT BANKING

• Unit Banking is a system of banking wherein a bank operates in a

limited area, does not open any branches in other places and is more
responsive to local needs.
• These bankers focus on development of the local area and better
community service. These banks have their own board of directors and
stockholders.