What are different types of commercial banks?

Commercial banks play an important role in economic society; In many ways, they represent mediators who move money on the market. There may be different types of commercial banks, each type offering different services. One basic similarity to these banks is their inability to subscribe loans and create agreements that issue securities to investors. Among the most common types of commercial banks are control, deposit and savings banks, many of which offered in one institution. These banks are also involved in business banking and loans. Checking accounts allows consumers to place money on the detention account and draw it later. The longer the customer leaves the money in the bank, the more opportunities the financial institutions must invest money. Banks never hold all the consumer money in its entirety in the bank vault. Institute, lends money in loans or purchase securities at the bank level to make money for the institution to remain solventhem.

Banks dealing with basic services can also offer savings accounts in addition to checking accounts. These accounts are very similar to control accounts, although many types of savings accounts offer a small percentage of interest that rewards consumers for placing money in the bank. These types of commercial banks use interest payments to force multiple consumers to open accounts in the bank. With more accounts, more money flows into the bank and more loans provided to other parties is often the final result. Overviews in the cash market can also be options in these basic commercial banks.

Another level of commercial banks is those that provide loans directly to consumers or to those who use banking services. Rather than loans to other parties or thosnejsou associated with the bank, loans to the bank allow the bank to the financial institution another flow of income. Interest charged from the loan is returning to the bank's box office and allowIt gives him growth and expand to other markets. These types of commercial banks can be most common with business customers looking not only for basic banking services, but also to obtain loans from reasonable sources. These types of commercial banks can also offer accreditation, performance bonds or other business business obligations.