Commercial banks

Industrial banks

Exchange banks

Agricultural banks

Saving banks

Central bank

Investment banks

Mortgage banks

Cooperative banks

Labour banks

Merchant banks

School banks

Consortium

Schedule and non-schedule banks

Commercial banks.

It is chiefly engaged in financing internal trade and also carries on other ordinary banking business in receiving deposits, advancing loans and discounting bills.

Industrial banks.

These institutions specialize in financing industry. They advance loans for long periods to people who carry on industrial enterprise.

Exchange banks.

The main function of this bank is to buy and sell foreign currencies rather titles to foreign currencies, in the for of Bill of Exchange, drafts, telegraphic, transfers etc.

Agricultural banks

Such banks provide long and short period finance to agriculturists. Long period capital is required for acquisition and improvement of land and purchase of heavy equipment. Short period is necessary for current expenditures on seed, manners, wages etc. In Pakistan such banks take the form of cooperatives societies for short-period lending and land-mortgage banks for long-period loans.

Saving banks

These institutions provide facilities to people, usually of small means to save money. Post offices in Pakistan carry on the function. Of course other banks also accept saving deposits.

Central bank

A central bank is the most important institution in the banking system of a country. In fact it directly and indirectly controls the activities of all other banks.

Investment banks

The main functions of these banks are the merchandising of shares, bonds and securities. In 1966 Investment Corporation was established.

Mortgage banks

A bank, which advances loan against some immovable property, house, land and other property, is called mortgage banks.

Co-operative banks

Cooperative banks are very important banks of any country. They usually set up to raise the living standard and to improve the adverse conditions of the people. In Pakistan every province has its own cooperative bank.

Labor bank

Labor banks are opened by the trade unions of laborers, These banks are established for the purpose of managing the workers funds like pension funds, provident fund etc. in a better way. These banks advance loans to the concerns, laborers can deposit their money in labor banks.

Merchant banks

Merchant banks provide the services like acceptance of bills of exchange, corporate finance, hire purchase and insurance brooking etc. These banks are considered as wholesale banks, companies and individuals can place their money in these banks for a fixed time period.

School banks

These banks are opened for creating the savings habits in the students of schools. The officers of these banks go to schools at regular intervals for the collection of saving from the students. If new students want to open the account then these banks provide the boxes and bags to keep their saving.

Scheduled and Non-Scheduled banks

Scheduled banks are those which are registered in the list of central ban. They are bound to follow the instructions and policies of central banks. Ex: Habib bank. Allied bank of Pakistan etc.

Non-Scheduled banks which are not registered in the list of central bank and they are not bound to follow the instructions and policies of the central banks

Consortium

Consortium means a bank, which is owned by other banks. A consortium bank creates the long-term financial needs of large companies. Such banks normally lend to small countries for big projects.