Classification of Banks
Types of Banks
y On the basis of ownership y On the basis of domicile y On the basis of Function
Public sector banks y 2. y 1.Types of Bank on the basis of Ownership
y The banks are classified on the basis of ownership
into two categories. Private sector banks
y 2. Public sector banks:
y The banks owned and controlled by the Government
are called Public sector bank. e. Bank Alfalah etc
. Private sector banks:
y The banks owned by corporations are called private
sector banks. e.g Pashtany Bank.Types of Bank on the basis of Ownership
y 1.g Habib Bank.
. y 1. Domestic banks y 2.Classification of banks on the basis of domicile
y The banks are divided on the basis of domicile into
Azizi Bank etc
y 2.g. Foreign Banks
y The banks which have their origin and head offices
in the foreign countries are called foreign banks. e.Classification of banks on the basis of domicile
y The banks registered and incorporated within the
country are called domestic banks.g. Domestic banks. Standard Charted Bank etc
. Kabul Bank. National Bank. e.
12. 5. 9. 13.Classification of Banks on the basis of Function
1. 4. 2. 10.
Central Bank: Commercial Banks: Exchange Banks: Saving Banks: Agriculture Banks: Industrial Banks: Co-operative Bank Mortgage Bank Investment Bank Merchant Bank Consortium Bank Export-Import Bank School Bank Labour Bank
. 14. 3. 7. 6. 8. 11.
agent and advisor to the government Banker to commercial banks Controller of credit Clearing agent Lender of last resort Custodian of foreign exchange reserves Development Role Other Functions
. y The primary function of the central bank is to regulate the flow of money and credit in order to promote efficiency.Classification of Banks on the basis of Function
1. In Pakistan ³State Bank of Pakistan´ is the central bank (in England it is ³Bank of England´ and in America it is ³The Federal Reserve System´). Central Bank:
y Central Bank is the bank of banks. y Functions of central bank are. y ³Da Afghanistan Bank´ is the central bank of Afghanistan.
Sole right of note issue Banker. Every civilized country now has its
own central bank. stability and growth in the country.
They also provide special financial services and agency services.Classification of Banks on the basis of Function
2. Azizi bank. Basic Functions Secondary Functions
y Commercial banks are those banks which are engaged in y y y y y
performing the routine duties of banking business. They collect surplus money and make loans and advances in the form of overdrafts. Functions of commercial banks are. Habib Bank etc are commercial Banks. In Afghanistan Kabul Bank. Commercial banks in short are considered the life blood of the economic society. cash credit and discounting bills of exchange.
the following is the list. y Afghanistan International bank (AIB) y Azizi Bank y Arian Bank y Alfalah Bank Limited y Bank-E-Millie Afghan y BRAC Afghanistan Bank y Development Bank of Afghanistan
.List of Commercial Banks in Afghanistan
y The Afghanistan Bank has licensed 15 commercial
Banks which are members of Afghanistan banks association.
List of Commercial Banks in Afghanistan
y Export Promotion Bank y Habib Bank of Pakistan y Kabul Bank y National Bank of Pakistan y Pashtany Bank y Punjab National Bank of India y Standard Chartered Bank y The First Micro Finance Bank
banks takes the responsibility of settlement of foreign exchange and arrange the foreign businesses. y American Express bank. Currency exchange Providing information for international business Providing finance for international business Bank drafts and Bill of exchange Letter of credit
. Rupali bank.Classification of Banks on the basis of Function
3. y There functions are. bank of oman are some examples of exchange banks. Exchange Banks:
y Exchange banks are mainly deal with international trade. y In Afghanistan commercial banks have been allowed to do the business of Exchange Bank.
There Functions are. Saving Banks:
y Saving banks are those banks which collect and keep the small y y y y y
savings of the public. The Saving banks invest the funds in the safest government securities and offer reasonable rate of profit on saving accounts. Students. Accepting deposits of people for saving Investing the money of people in safe means of investment
.Classification of Banks on the basis of Function
4. They are called thrift promoting institutions. government employees and household women are usually opening such accounts. A prior notice to bank is necessary for withdrawal of huge amount (More than Afs 15000) National Saving bank in England and Post office saving bank in Pakistan are examples of saving banks.
y The bank is responsible for the development of agriculture sector
of the country. Agricultural Mortgage Corporation in England and Federal Land Bank of USA y There functions are.Classification of Banks on the basis of Function
5. y Agricultural Development bank of Pakistan. y Agriculture banks are set up to provide financial assistance to the agriculturists and agro-based industries. Providing long term advances for buying tractors etc Short term loan for purchasing seeds and fertilizers Introducing modern techniques in farming Making awareness in farmers by seminars Medium term loans for construction of tube wells
Classification of Banks on the basis of Function
6. Industrial Banks:
y The Industrial banks provide medium and long term credit to the
industries. The growth of industries depends on these banks. Granting loans to set up new companies Long term loans for machinery and construction of building Loans for modernization and replacement of business units Short term loan for purchase of raw material and payment of daily expenses. y There functions are.
. y Industrial development bank of Pakistan and Industrial bank of Japan are working as industrial banks. y In Afghanistan mostly commercial banks provide financial assistance to the industries.
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