Types of banks and their characteristics

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2019-07-05 01:00:19

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The Banking system – an extensive network of credit institutions. Currently there are types of banks depending on their functions and operations they perform, the service sector, scope and availability of branches. Almost everyone is faced with the necessity of cooperation with various banks. So focus on their classification in more detail.

In the first phase of the emergence of the credit organization it belongs to society, closed or open type or limited liability company. It depends on the legal form of the Bank.

Depending on the operations performed and services rendered by banks are divided into universal and specialized.

There are public, private, mixed and joint-stock credit institution. It depends on the type of the owner. To state organizations, mainly include the Central banks of the country.

Foreign banks may also be present on the market of rendering of services and is considered separately in the legislative framework.

Functions distinguish between commercial, investment, mortgage, savings, issuing and escrow banks.

Commercial banks engage in the provision and implementation of banking products. It operations design and trade-commissions on factoring and leasing. The following types of commercial banks: savings, insurance and mortgage. They operate in almost all sectors of loan capital.

Banks larger offer a full range of services. Types of banks specialized purposes have a more limited capacity. Commercial banks are the stable core component of the entire credit system. They can carry out their activities not only within the country but also beyond its borders, opening up branch operations.

The Next kind is the investment banks which are engaged in issue of securities and of founder's activity. Usually at the request of the state, they determine the size of the issue, determine the type of securities that will be issued, as well as help with their accommodation and treatment. These types of banks are the guarantors of the collateral securities. They acquire and provide loans and credits to other buyers.

Savings banks that are not commercial, are controlled by the state. This medium-sized credit institution. Usually they are accepting deposits from individuals and provide loans to the population. In addition, they are engaged in the purchase of securities and issue credit cards.

Mortgage banks provide loans secured by real estate. They produce mortgage bond character.

A Status that has banks, their types and functions depend on many factors. It is primarily a list of services. But banks are distinguished, and depending on the sophistication of their network. If the Bank has many branches, it is called a multi. Small credit institutions which have branches, called branchless.

Depending on the industry sectors and their number the Bank may be multidisciplinary or have a certain specialization.

Basically, the existing banks are diversified. In this case, the risk of loan default is greatly reduced. Some banks tend to work with a specific group of companies, which are their founders. Here, the risk of loan default is very high.

There are different types of banks. But the most common are those which have a large range of services and are multidisciplinary. In this case, they are considered more reliable and stable.


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BE: https://www.tostpost.com/be/adukacyya/34946-v-dy-banka-h-asabl-vasc.html

DE: https://www.tostpost.com/de/bildung/34612-arten-von-banken-und-deren-eigenschaften.html

ES: https://www.tostpost.com/es/la-educaci-n/34469-los-tipos-de-los-bancos-y-de-sus-caracter-sticas.html

HI: https://www.tostpost.com/hi/education/19882-types-of-banks-and-their-characteristics.html

JA: https://www.tostpost.com/ja/education/17875-types-of-banks-and-their-characteristics.html

KK: https://www.tostpost.com/kk/b-l-m/35242-bankterd-m-n-zh-ne-yzmetter-zh-ne-olardy-erekshel-kter.html

PL: https://www.tostpost.com/pl/edukacja/36311-rodzaje-bank-w-i-ich-funkcje.html

PT: https://www.tostpost.com/pt/educa-o/36114-tipos-de-bancos-e-suas-caracter-sticas.html

TR: https://www.tostpost.com/tr/e-itim/31660-t-rl-banka-ve-zellikleri.html

UK: https://www.tostpost.com/uk/osv-ta/35467-vidi-bank-v-ta-h-osoblivost.html

ZH: https://www.tostpost.com/zh/education/3535-types-of-banks-and-their-characteristics.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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