Q.4. Explain some of the kinds of banks?
KINDS OF BANKS
Some important types of banks are as follows
i. 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.
ii. 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.
iii. Industrial Bank
These type of banks provide loans to industries. Generally these banks advance loans for long periods.
iv. 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.
v. 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.
vi. Saving Bank
Saving Banks provide incentives to people of small means to save money. These banks provide monetary facilities to the people.
vii. 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.
viii. 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.
OR
How many types of banks are there? Briefly explain each of them.
OR
Write a short note on kinds of banks.KINDS OF BANKS
Some important types of banks are as follows
i. 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.
ii. 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.
iii. Industrial Bank
These type of banks provide loans to industries. Generally these banks advance loans for long periods.
iv. 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.
v. 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.
vi. Saving Bank
Saving Banks provide incentives to people of small means to save money. These banks provide monetary facilities to the people.
vii. 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.
viii. 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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