Banking is a service industry that helps people to

borrow and lend and carry out a range of other

financial activities.
TYPES OF BANKS

1. Central Banks
2. Commercial Banks
3. Investment Banks
4. Savings Banks
 Central Banks

A Central bank is a government owned bank which

provides banking services to the government and
commercial banks. Examples Bank of Ghana,
Federal Reserve Bank of the USA(Fed), Bank of
England, European Central Bank
 The Functions Of A Central Bank
1. Acts as a bank to the government
2. Operates as a banker to the commercial banks
3. Acts as a lender of last resort
4. Manages the national debt
5. Issues bank notes
6. Holds the country’s reserves of foreign currency and
gold
7. Implements the government’s monetary policy
8. Controls the banking system
9. Represent the government
 Commercial Banks

Commercial banks are also called joint stock banks,

retail or high street banks.
Commercial banks are private sector banks which
aim to make profit by providing a range of banking
services.
 Functions of Commercial Banks
1. Accept deposits
2. Lend
3. Enable customers to make payments
4. Dealing in foreign currency
5. Holding important documents and small valuables
6. Helping with wills and tax
7. Selling insurance
8. Providing mortgage loans
 Other Banks
Investment Banks: Sometimes called merchant banks
provide banking services to large firms including
loans, issuing shares, providing advice and help with
mergers and take overs.

Savings Banks: Savings banks seeks to encourage

savings, particularly among those with low incomes.