All of us are associated with banks in some or the other way, but how well do we know the different types & functions?
Here’s an informational piece on how different types of bank play an important role in their own way:
INDUSTRIAL LOAN COMPANY:
Industrial loan companies are subsidiaries of big corporations whose initial purpose was to provide loans to low- and middle-income workers who couldn't get such loans from banks.
Industrial loan companies have been around for nearly 100 hours, and are now primarily owned by big financial companies, such as Goldman Sachs, Merrill Lynch and American Express. Companies set up by these financial giants have considerable assets and access to capital.
It also regulates the commercial banking system and lends money to other banks. While most central banks are government owned, some have mixed ownership. Sweden was the first country to establish a central bank, in 1656.
COMMERCIAL BANKS
A commercial bank offers transactional, savings, and money market accounts apart from accepting time deposits.
Although majority of banks provide both commercial and retail banking services, commercial banks can differ from retail bank as they provide financial services directly to their customers.
CREDIT UNION:
Credit unions are financial institutions formed, owned, managed by their members with the aim to offer loans at lower interest, fewer service charges and higher savings rates.
EXPORT CREDIT AGENCY:
Export credit agency facilitates trade between nations by offering financial assistance to exporters. The assistance is generally supported by the government, and its aim is to keep the private exporters financially viable.
A good part of the deal is to help those exporters who trade with developing countries that pose greater financial risk.
OFFSHORE BANK:
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages.
Generally speaking, an offshore bank can be any bank that is based outside the country. Offshore banks provide all the services the local banks provide.
Source: Rediff News
Here’s an informational piece on how different types of bank play an important role in their own way:
INDUSTRIAL LOAN COMPANY:
Industrial loan companies are subsidiaries of big corporations whose initial purpose was to provide loans to low- and middle-income workers who couldn't get such loans from banks.
Industrial loan companies have been around for nearly 100 hours, and are now primarily owned by big financial companies, such as Goldman Sachs, Merrill Lynch and American Express. Companies set up by these financial giants have considerable assets and access to capital.
It also regulates the commercial banking system and lends money to other banks. While most central banks are government owned, some have mixed ownership. Sweden was the first country to establish a central bank, in 1656.
COMMERCIAL BANKS
A commercial bank offers transactional, savings, and money market accounts apart from accepting time deposits.
Although majority of banks provide both commercial and retail banking services, commercial banks can differ from retail bank as they provide financial services directly to their customers.
CREDIT UNION:
Credit unions are financial institutions formed, owned, managed by their members with the aim to offer loans at lower interest, fewer service charges and higher savings rates.
EXPORT CREDIT AGENCY:
Export credit agency facilitates trade between nations by offering financial assistance to exporters. The assistance is generally supported by the government, and its aim is to keep the private exporters financially viable.
A good part of the deal is to help those exporters who trade with developing countries that pose greater financial risk.
OFFSHORE BANK:
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages.
Generally speaking, an offshore bank can be any bank that is based outside the country. Offshore banks provide all the services the local banks provide.
Source: Rediff News
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