There are various kinds of banks in modern age. Every bank has different features. The main types of the banks are these:
Central Bank Every country has a central bank. The name of central bank in Pakistan is State Bank of Pakistan. The aim of this bank is not to earn profit but the regard the supreme interest of the country. It is responsible for regulating the volume of money and credit in the country. All the notes are issued by this bank. It is financial adviser to the government.
Commercial Bank: The commercial banks work on commercial basis. Their main aim is to earn profit. The banks accept deposits from the people and advance short, medium and long term loans to the businessmen. The commercial bank also provides a number of agency and utility services to the public.
Exchange Banks: These banks deal in foreign exchange. The main aim of such banks is to buy and self foreign currencies and facilitates the export and imports of goods. In Pakistan, the Chartered Bank and the Grindery Bank are the examples of exchange banks. Moreover, the scheduled commercial banks also deal in foreign exchange.
Industrial Banks: These banks advance medium and long term loans for the setting up industrial units in the country. In the western countries there are a large number of industrial banks while in Pakistan has small number of institutions are engaged in financing industries.
Central Bank Every country has a central bank. The name of central bank in Pakistan is State Bank of Pakistan. The aim of this bank is not to earn profit but the regard the supreme interest of the country. It is responsible for regulating the volume of money and credit in the country. All the notes are issued by this bank. It is financial adviser to the government.
Commercial Bank: The commercial banks work on commercial basis. Their main aim is to earn profit. The banks accept deposits from the people and advance short, medium and long term loans to the businessmen. The commercial bank also provides a number of agency and utility services to the public.
Exchange Banks: These banks deal in foreign exchange. The main aim of such banks is to buy and self foreign currencies and facilitates the export and imports of goods. In Pakistan, the Chartered Bank and the Grindery Bank are the examples of exchange banks. Moreover, the scheduled commercial banks also deal in foreign exchange.
Industrial Banks: These banks advance medium and long term loans for the setting up industrial units in the country. In the western countries there are a large number of industrial banks while in Pakistan has small number of institutions are engaged in financing industries.
