3. Types of Banking and financial institutions

Different Types of Banking and Financial Institutions

There is lot more to banking term than what most of the people recognize. Not all banks are shaped in equal manner or to operate for the same reason with same fundamentals. Since individuals or corporate have diversified needs of finance. “Different types of financial institutions and banking institutions are operated to classify services based on distinctive types”. Name banks subject to large entity they are further divided into types based on universal arrangement of capital principles.

Bank is one of the types of financial institutions or intermediary institutions for various financial necessities and dealing either directly or indirectly with financial system of nation’s economy. Due to this important factors banks are highly regulated by nation’s government or central bank of country. Banking industry is divided into different types based on client requirements for products and services.

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