We all know that a bank is a place which takes care of its customer’s money, regulates it among the government and general public levels and financially assists its customers. However, it is only a lay man’s knowledge about a bank. Banks are of several types and they differ according to their dealings which are definitely about the financial matters. The banking principles and regulations diverge from country to country as well. Also various restrictions on banks are laid and uplifted according to the cultures and requirements of the time.
All the various types of banks function in their own market according to their own rules. Usually, banking is a business in itself, and banks are profitable entities but some of the banks operated by government are non-profitable. Below are the few main types of banks:
- Retail Banks: The customers of retail banks are usually general people and owners of mini firms. They deal in the mortgage loans, credit cards and saving accounts.
- Business Banks: They deal with the middle scale industrialists and business owners.
- Private Banks: The high class and multinational businessmen are offered financial services by the private banks.
- Investment Banks: Banks dealing with the financial markets are called investment banks.
- Central Banks :Last but not the least is the central bank. All the central banks are usually under the government directly and they are responsible to have a check on the rest of the banks and also to control and manage the interest rates. They also offer help to the businesses and corporations but only if there is no other choice.
Out of all the previously described types of banks, retail banks are sub-divided according to their functions.
Following is a short briefing about the kinds of retail banks:
- Commercial bank: Commercial bank is to deal with the loans, mortgages, and the credits of high level industries and businesses. In fact, the investment banks were limited to the investment market by the US Congress only after the Great Depression.
- Community banks: The locally working corporation that makes the financial decisions for its customers and partners.
- Community Development Bank: The community development banks are to pay special attention to the ignored public and market of the society.
- Private Banks: We also consider the privates banks under retail banks as they deal with the general public individually too. The minimum amount required to open an account in a private bank in United States used to be of 1 million US dollars. However, this opening amount due to growing business has been reduced to quarter of a million US dollars.
- Offshore Banks: The banks with the least laws and low taxation are called offshore. They are placed under the private banks.
- Ethical Banks: Ethical banks function on the honest and clear policies and believe in socially responsible financing only.
Kentucky Bank Branches is user-friendly resource, which can help you understand Louisiana Banks.