TYPES OF BANKS

Bank can be classified into various types on the basis of their functions, ownership,domicile etc. The following are the various types of banks:

1. 
   
   Central Bank :- Central Bank is the apex institution which controls, regulates, supervises the banking system of the country. It occupies a central positon in the monetary banking structure of the country. Important functions of the central bank are; Note Issue; banker; Agent and Financial  advisor of the government; Custodiam of the member banks' reserves; Custodian of the Foreign exchange, Lender of the last resort, Clearing, Settlemnet and Transfer; Formulation and Implementation of Monetary and Foreign Exchange Policy,Credit control, Research and Publication ect. Besides these functions Central Banks also performs development functions to promote economic development in the country.Bank of England is the first central bank in the banking history.
2. 
   
   Commercial bank:- Commercial bank performs all kinds of banking business and generally finance, trade and commerce. In addition to the primary functions of receiving deposits and lending to others, these banks indertake a wide variety of functions to assist their customers by performing agency service and general utility services. Deposit of the commercial banks are for the short period of time, hence they involve in the short period of lending activities. However, recently the commercial banks have also extended their aresa of operation to medium term ans long term fincnce.
3. 
   
   Development Banks
4. 
   
   Merchant Banks
5. 
   
   Industrial Banks
6. 
   
   Exchange Banks
7. 
   
   Saving Banks
8. 
   
   Rural Banks
9. 
   
   Co-operative Banks
10. 
    
    Buliding societies