There are various types of banks. The necessity for the variety among these banks is because each bank is specialized in their own field. Each bank has its own principles and policies. Different rates of interests are also noted among these banks. All these banks are listed as below:
Savings Banks – these banks are suited for employees with a monthly salary. Low waged people may open an account in the savings bank.
Commercial Banks – These bank collects money from people in various sectors and gives the same as a loan to business men and make profits in interests these business men pay. Since the loan is large the interest rates are also high.
Industrial Development Bank – these banks are committed towards enhancing the growth of industries by providing loans for a very long period of time. This is vital for the long term growth of the industries.
Land Development’s Bank – these banks promote growth in the food sector, by giving loans to farmer at a relatively lower interest rate. The loan is usually given on the basis of land. If a farmer has lots of agricultural fields then the more will be the loan provided.
Indigenous Banks – native banks. They are normal moneylenders; only this time, handling huge amounts of money. They collect money from the community and provide loans to business men and industrialists for a short amount of time.
Mortgage Banks – these banks are specialized in providing mortgage loans alone. In order to sell loans they depend solely on the secondary market.
Spare Bank – these banks are present in Norway. They promote both savings and commercial facilities to the both people and organizations in Norway.
Federal or National Banks – these banks control the principles and policies of other banks across the country. These banks are managed and run by the government. This bank provides benchmarks which other banks should follow.
Co operative banks: co operative banks as the name suggests gets money from the general community without any bias and provide loans to all sections of people in the neighborhood. Their motto is not profit alone, but service.
Exchange Banks – these banks will be available in more than a single country. They provide services for the buying and selling of gold and silver; transactions will be in foreign currencies.
Consumer’s Bank – these are consumer friendly banks; they encourage the consumer in buying commercial products and provide options for easy repay of the loan amount.
Community Development Banks – these banks provide services to the community; where there has been nothing or very little development over the years.
Credit Unions – they act just like a co operative bank except that they provide services to only one employee union in the community. Low interest rates and easy installment paybacks are features of this bank
Postal savings bank: these banks are oriented with postal services. People save money for a defined period of time and are paid with standard interest rates.
Private Banks – these banks are not for the general public or community. They serve entirely for private personnel’s assets and transactions alone.
Offshore Banks – they are also private banks except that they have little tax to pay for their transactions; there is very little regulation for this bank.
Ethical Banks – as the name implies ethical banks promote candid transactions; between various customers of the bank. Policies and rules are transparent in nature.
Internet Bank – provides banking facilities only via internet. There will be no physical contact with the bank. All transactions are permitted only through online.
Investment Banks – these banks are pertinent to large organization’s investment ventures across the industry. They provide advice in the investments and promote corporate transactions.
Merchant Banks – these banks exist for a long time. They promote investing in organizations that reap huge benefits for a long time rather than brand new organizations.
Universal Banks – these banks have a wide spectrum of financial assistances to provide. Insurances to stocks, they promote everything across all countries around the globe.
Islamic Banks – these banks are based on the principles of the religion Islam. There are no interests for loans acquired from this bank. Service charges may apply.
The above are some of the types of banks around the globe. They may be further classified according to their role and designation,