Types of Banks - Business Studies Video Lecture - Class 11

Ans. The different types of banks include commercial banks, investment banks, central banks, cooperative banks, and savings banks. Commercial banks provide a wide range of services to individuals and businesses, such as accepting deposits, granting loans, and offering various financial products. Investment banks primarily deal with capital markets, mergers and acquisitions, and trading securities. Central banks are responsible for managing a country's money supply, setting interest rates, and maintaining financial stability. Cooperative banks are owned and operated by their members, who are typically individuals or small businesses. Savings banks, also known as thrift institutions, focus on accepting savings deposits and providing mortgage loans.

Ans. Commercial banks offer a variety of services, including accepting deposits from individuals and businesses, granting loans and credit, facilitating money transfers, providing investment and retirement accounts, issuing credit and debit cards, and offering various financial products such as insurance policies, mutual funds, and fixed deposits. They also provide services like internet banking, mobile banking, and ATM facilities for convenient access to funds and transactions.

Ans. Central banks play a crucial role in the economy by managing a country's money supply, controlling interest rates, and maintaining financial stability. They regulate and supervise commercial banks, implement monetary policies to control inflation and stimulate economic growth, and act as lenders of last resort during financial crises. Central banks also oversee the stability of the banking system, ensure the smooth functioning of payment systems, and manage foreign exchange reserves.

Ans. Cooperative banks differ from commercial banks in terms of ownership and operation. Cooperative banks are owned and operated by their members, who are typically individuals or small businesses. They operate on a cooperative basis, where members have a say in decision-making and share in the profits and losses. In contrast, commercial banks are owned by shareholders and are profit-oriented institutions. Cooperative banks often have a local focus and aim to serve the financial needs of a specific community or group of members.

Ans. Savings banks, also known as thrift institutions, primarily focus on accepting savings deposits from individuals. Their main function is to provide a safe place for individuals to save their money. They offer various types of savings accounts, such as regular savings accounts, certificates of deposit, and money market accounts. Savings banks also provide mortgage loans to help individuals purchase homes or properties. They may offer other services like personal loans, credit cards, and investment products, although their primary focus remains on accepting deposits and providing mortgage financing.