TYPES OF FINANCIAL INSTITUTIONS AND THEIR FUNCTIONS

CONTENT

1. Definition of a Bank
2. Types of Banks
3. Commercial Banks
4. Types of Bank Accounts
5. Credit Facilities Provided by Commercial Banks
6. Ways Commercial Banks Create Credit or Money
7. Limitations to Credit Creation by Commercial Banks
8. The Central Bank
9. How Central Bank Controls the Commercial Banks
10. Differences between Central Bank and Commercial Banks
11. Development Banks
12. Merchant Banks
13. Mortgage Banks
14. Insurance Companies

Definition of a Bank

A bank is a commercial institution which performs various financial activities, e.g. accepting and handling of deposits of its customers. Bank is also a place where money and other valuables like will, jewellery, etc. are kept

Types of Banks

1. Commercial banks
2. Central bank
3. Merchant banks
4. Development banks
5. Savings bank
6. Mortgage bank

Commercial Banks

Commercial banks are financial institutions which accept deposits and other valuables from the public for safe keeping, with the sole aim of making profit.