Q.4. Explain some of the kinds of banks?
OR
Q.4. How many types of banks are there?
Briefly explain each of them.
OR
Q.4. Write a short note on kinds of banks.
KINDS OF BANKS
Some important types of banks are as
follows
1. Central
Banks.
This bank is of great significance in
the banking system of a country. Central Bank is considered as the Bank of
government and directly or indirectly control the activities of all the banks
operating in the country. State Bank of Pakistan is the central bank of
Pakistan.
2. Commercial
Bank
This is another most important type
of the banking system. It is main function is to receive deposits, advance
loans and discounting of bills.
3. Industrial
Bank
These type of banks provide loans to
industries. Generally these banks advance loans for long periods.
4.
Agricultural Bank
The main functions of these banks is
to provide loans for long and short periods to the agriculturists. Long period
loans are used for acquisition of and improvement of land while short period
loans is used for purchasing seeds manures and for current expenditure.
5. Exchange
Bank
These banks deal in foreign
currencies in the form of bill of exchange, drafts, telegraphic transfers etc.
They buy and sell foreign currencies.
6. Saving
Bank
Saving Banks provide incentives to
people of small means to save money. These banks provide monetary facilities to
the people.
7. Land
Mortgage Banks
These banks are meant to provide
loans to agricultural by mortgaging their lands. An agricultural has to
mortgage his his land if he wants to take loan from this particular type of a
bank.
8.
Co-Operative Bank
Such type of banks are usually run by
co-operative societies through its members. These are non-scheduled banks. They
are meant for the benefits of the society and its members.
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