Despite the fact that all banks work according to the same schemes and programs, they themselves differ from each other. And in order to understand the working conditions, as well as the procedure for financing and supporting certain financial institutions, it is necessary to clearly understand which of them belong to which categories.
The banking system is a rather complex mechanism. It consists of a whole network of credit institutions. Banks are divided into categories according to a number of features, including their functions, operations performed, service sectors, scope of work, and the presence of branches.
What types are banks divided into
Experts distinguish 2 types of banks, based on the nature of their activities, form and specifics. These are central and commercial banks. Central banks, as a rule, are the main and very important link in the system, which are designed to strengthen the national banking and monetary systems. In addition, central banks must ensure the stability of the national currency, as well as work on the organization of the settlement system. Central banks have the right to issue cash and non-cash money.
Commercial banks are designed to serve both legal entities and individuals. The purpose of such service, first of all, is to make a profit through various banking operations. Commercial banks can issue non-cash money.
Also, banks can be divided according to the territorial principle. In this case, local (regional) banks, interregional, etc. are distinguished. Such financial institutions serve the needs of certain regions, which may be located abroad.
State banks are unitary enterprises that are created entirely on the basis of state property. Private banks are based on private ownership. And there are also those financial organizations that have various joint-stock companies as a form of management - open, closed, etc. Banks that are classified as OJSC are organizations that distribute their shares through public sale and also allow their securities to circulate freely on the market. A bank, which is a CJSC, is an organization that does not allow its securities to circulate freely on the market.
Also, in the territory of one country there may be foreign banks. These include credit institutions that have their own 100% capital. In addition, sometimes they are called joint banks on an equity basis with local credit institutions.
Municipal banks aim to develop local companies, they are also responsible for loans and finance in a particular municipality. The founders are usually local authorities, as well as other companies and organizations that are interested in the development of the region.
In addition, banks can be subdivided into agricultural, industrial, trade, utilities, construction, etc. As a rule, in this case, the bank is focused on financing a particular area of industry.
What to consider
If you cannot decide which bank you want to take your money to, carefully study the conditions that are offered by this or that financial institution. So, for example, you can apply not just a deposit, but make an investment in any industry.
Against the backdrop of a wave of bank closures in Russia, many clients of financial institutions have questions about the advisability of cooperation with banks. Experts say: if you want to be sure, contact state banks. Let them have a slightly lower interest rate on deposits, but the reliability and security of these deposits is more reliable.
