Different Types Of Banking and Their Functions
Banking is one of the major factors today in terms of economy for the country. Banks not only provide us loans but they also manage the economy of the country. Their impact in our mind is that whenever we think about buying something bigger the first thing that comes in our mind is loan and the question arises in our mind are which bank will give me loan and how much loan will it get?
Everyone today have their own need and so they are dependent on loan accordingly. Since the need is different the methods are different and this is the reason why there are many types of banking available. Today if you want you can get locker spaces in order to keep your jewelries, documents saved, though you have to pay a bit of money as rent but your belongings will be safe. San Francisco banking service is the one that will provide you all these services.
Today banking is divided in to various parts for example, Retail banking, cooperative banking, commercial banking, investment banking, Specialized banking etc. All these banks are provided with their own methods of operation. These banking have been made so that to keep each type of work separately and specifically.
Retail banking is the one that is used by normal people for example money deposit and withdrawal, saving and loan fixed deposits. These types of services are usually provided by all the banks. Commercial banking is the service in which money is deposited by public in order to get that money invested in some or the other business, secures or un secured loans, credit and debit cards etc. these commercial banks works as a mediator between the two parties.
Public sector banking is the one in which the government has the major stakes and these banks usually work for social objectives when compared with profitability.
Private sector banking is the one that is totally managed and controlled by private organizations or by individuals. They are always free to operate but they have to follow general guidelines.
Investment banking is one of a service that assists individuals, corporations and sometime governments in raising funds.
Cooperative banking is the one that is controlled and operated by the rules and regulations of state and its societies and this is only meant to be done in order to provide money with very small interest rates. Specialized banks are the ones that are usually foreign exchange banks, development banks, export import banks etc.