The use of banking is various, our needs are diverse and mode of banking is also different. Thus, we need distinctive kinds of banks that will fulfill the above-mentioned difficulties. Institutions who usually take deposits in the form of commercial banks and thus provide commercial, vehicle, and other loans. Mutual savings banks are also there that accept deposits and provide mortgage and different types of loans. Another type in banking is credit unions. Usualy these are cooperative organizations that helps in issuing shares and provide loans to members at very low interest rates.
The banking industry is further divided into the sectors given below:
- Retail Banks
- Commercial banks
- Cooperative banks
- Investment Banks
- Specialized banks
- Central banks
Retail Banks:
This type of banking usually provide basic banking services to individual costumers. For example this include savings banks account, loans and recurring and deposits. Products and services of such banks include safe deposit boxes, checking and savings banking, fixed deposit, mortgages, consumer, personal, and car loans. You can go for san francisco banking and get all the services.
Commercial Banks:
Commercial banking means deposits of money from the individual customers in order to fulfill the purpose of loans or investment. Commercial Banks helps in providing financial services to people who are in businesses, this also includs credit and debit cards, deposits, bank accounts and loans, and it also includes secured and unsecured loans. Today commercial banks are also working like investment banks in terms of money. Commercial banks in todays concept is the mediator who take financial intermediaries, from the depositors and lending the same deposit to the borrowers.
Now there are two more types in commercial banks, private sector banks and public sector.
Public Sector Banks:
These banks are those in which government has most of the stakes and thus they usually work for the welfare of the society than for profitability.
Private sector banks:
As the name says these banks are usually owned, managed and controlled by the private promoters and thus they are totally free in order to operate as per market laws.
Investment Banks:
An investment bank is the institution that helps the individuals, companies and governments in managing the financial bodies by working under the government laws. These investment bank also helps in assisting the companies that are iinvolved in mergers and acquisitions, and provide some more services like market making, trading of shares, foreign exchange, commodities, and securities.
Investment banks also provide loans to the companies so that the companies will be able to develop.