Banks offering various specialized services away from traditional banking are called as specialized banks. Specialized banks are those types of financial institutions which referred as foreign exchange banks, development banks, industry and mine banks, farms and agriculture banks, aboriginal banks (providing financial products and services to aboriginal communities), export-import banks with unique needs.
Some specialized banks are governed and regulated by state or central governments or both for re-structuring, planning and development of the country. Specialized banks and financial institutions are broadly categories into three types of specialized banks, they are:
- Export Import Banks (EXIM Banks).
- Small Industries Development Banks.
- Agricultural and Rural Development Banks.
Conclusion
Banks are one of the types of financial institutions. Their main role is receiving deposits, collecting funds, lends money, transfers funds from one person to another, safeguards money and more. Hope this concept of financial institutions types has improved your knowledge in understanding finances.