Understanding the Different Types of Banks and Their Roles
Classified in Economy
Written at on 
English with a size of 1.97 KB.
Types of Banks
Executive Summary
When you think of a bank, the first thing that comes to mind might be the place that holds your checking or savings account. But there are several different types of banks, all serving different types of needs. It is possible that many of the banks are not known, but each bank plays a very important role in the day to day. For example, Banking system is a group or network institutions that are responsible for operating a payment system, loans, deposits and helping with investments.
Introduction:
This report will look at:
- Commercial Banks
- Credit Unions
- Investment Banks
- Online Banks
- Offshore Banks
Findings:
1. At a Commercial Bank you can open a chequing or saving account apply for a car or home loan, transfer money or pay bills. A commercial bank is a type of financial institution that accepts deposits, offers checking account services, make various loans and savings accounts.
2. Are similar to banks, but they are not-for-profit organizations owned by members. Credit institutions are created, owned, and operated by their participants.
3. Investment banks help businesses work in financial markets. If a business wants to go public or sell debt to investors, they'll often use an investment bank.
4. Online banking allows a user to conduct financial transactions via the internet. Online banking offers customers branch including deposits, transfers, and online bill payments.
5. Offshore banks refers to a location outside of one's national boundaries. This is often an advantage of more favorable conditions in a foreign country, such as lower wage requirements or looser regulations, and can result in significant cost savings for the business.
Conclusion:
For me all types of banks are necessary although some types are used more than others. In addition, online banks are now having an increasing impact.