Types of banks, according to the variety of transactions made developed. Developed to meet the diverse needs of the business world, banks have diversified and started to offer appropriate services to their customers. There are banks such as trade, coastal, participation and development, which you will probably hear for the first time. Each of these are banks that serve the needs of the business world and have different characteristics.
What is a bank? How Is It Installed And What Are Its Operations?
If you are going to make transactions individually, you will be dealing with deposit banks. For both personal and commercial use of bank A where your account is held different affiliates There is also. The simplest example of this is the subsidiaries that provide brokerage services when investing. Of course, banks must meet various conditions in order to be able to perform these activities. Accordingly, it is possible to operate in those areas. Now let’s examine these banks and their features in detail:
Deposit Money Banks
Many our individual and commercial needs We can easily meet them through banks. Banks where we meet these needs have been established for different purposes. But we don’t have much idea about what these goals are. In fact, almost everyone is familiar with terms such as participation banking, deposit banking, and commercial banks. But few people know for what purpose these terms characterize banks.
Funding sources of such banks consist of deposits. They turn the deposits they collect into loans and carry out their services to their customers. It acts as a bridge between fund suppliers and demanders in financial transactions.
Deposit banks; accepting deposits, providing cash and non-cash loans, payments, fund transfers, checks and other bills of exchange transactions, custody service, correspondent banking transactions, investment consulting, portfolio management, factoring and forfaiting It özgü services in many areas such as money buying and selling transactions between banks, insurance and private pension brokerage.
Deposit banks have functions besides their duties. These are; to provide intermediation for financial resources. Financial intermediation function; Customers with excess funds, fund deficit is to provide aktarma to customers. In the function of providing intermediation to resources; resource utilization improvement, dematerialized money creationaims to improve trade and increase the effectiveness of monetary policies. This function of deposit banks increases the liquidity in the economy.
Investment Banks
As the name suggests, investment banks are responsible for providing resources to investing institutions. Since these resources are long-term and have low profit margins, they are highly preferred by companies. The work of preparing funds for the service that such banks will provide to the institution in need of credit, equity capital or by issuing long-term deposits and bonds from external sources. On the other hand, they try to obtain profitability by delivering the bonds and stocks of companies that are the customers of the bank to investors.
The duties of investment banks do not end with these. It is possible to function in a different direction. This function, on the other hand, is undertaking tasks such as company marriage and selling the company. Like this situation, investment banks have many different tasks. Public privatizations, documents, letters of credit, to provide long term low interest fund, to look after the interests of fund holders and to act as an intermediary between companies. Investment banks especially take part in public projects. It undertakes a fundraising role for such investments.
Participation Banks
Participation banks, which have an important place even if they are not very common in our country, have been developed for interest-free banking transactions. Participation banks in many countries that accept Islam operate for customers and investors who are sensitive to interest. The first example was established in Egypt in 1963. Mit Ghamr Savings Bank‘is. Interest-free transactions that started with this bank later spread to countries that are sensitive in this regard.
There are banks that provide interest-free participation banking services in our country. These can be established directly as a participation bank or as a subsidiary of an existing bank. for example Ziraat banközgü a subsidiary operating as a participation bank. There is no interest in these banks. They operate on the principle of realizing transactions by participating in a certain project or product.
In this non-interest system, banks’ gain is possible by taking a share from the profit or loss of the project from which they provide financing. It receives these transactions as deposits from customers who want to save with their savings. These deposits provide financial resources to support projects. It derives its income from the participation shares it receives from the projects. At the same time, 20 percent of the contribution earned to themselves, and 80 percent to savers they give.
Development Banks
Just like investment banking, we can get an idea more or less by looking at the name of development banking. This type of bank is generally seen in developing countries as in our country. They undertook the fundraising service for the investments to be made in the companies due to the lack of capital of developing countries. Development banks generally industry sector performs development-oriented tasks. We can understand this situation better by looking at the functions of development banks.
Functions of development banks; providing medium and long-term loans to the industrial sector, activating the industrial sector by dragging domestic resources into a dynamic structure, helping the development of capital markets, helping new entrepreneurs, pioneering investment areas, facilitating the implementation of development plans, conducting research and investigationsdirecting instruments such as foreign currency to the industrial sector, helping domestic and foreign investors to find partners, and supporting new ideas in the economy.
the central bank
Central bank in all countries of the world ‘bank of banks’ It is called. The bank of banks is the structure established to carry out the monetary policies of the country. Primary purpose is to ensure price stability. Apart from this, it is providing stability in the foreign exchange market, ensuring stability in the money market, ensuring full employment and growth.
At the same time, central banks have many functions. These are; the ultimate decision maker in the lending authority of the banking sector, control of interest, regulation and supervision of banks, managing the country’s foreign exchange and gold reserves, government bank that is.
Commercial Banks
Such banks collect funds for short-term transactions. With the funds they collect, they finance trade and production. The contribution of commercial banks to the country’s economy is enormous. To ensure the aktarma of funds between individuals, savings for the benefit of the country’s economy arranging it to be appropriate, converting idle savings into investments, serving individual customers, creating cash in register It özgü main tasks such as.
Banks Established for Special Purposes
It özgü a special charter and rules in its establishment. They are banks operating according to the purpose of establishment. For example; supporting the agricultural sector and the farmer, building and selling housing, supporting medium and small sized producers It özgü specific organizational purposes such as.
Coastal Banks
Coastal banking off – shore You can also see. Coastal banking is generally established in free zones. It enables the funds provided abroad to be used outside the country. While doing this, it is outside of laws and regulations. One of the purposes of establishing coastal banking is the interchange of internationally created funds. It provides certain advantages.
Against deposits, investors do not deposit against central banks. Certain are exempt from premiums and audits. In addition, they also get the option to increase their balance sheet profits. The transactions made in these banks have disadvantages for the country. These are; The loss of taxes is in the biçim of the central bank’s difficulty in collecting provisions and the loss of its authority as it is not able to provide full competition.
What is Web Banking? How are Transactions Made?
International Banks
Such banks lead to the increase of global trade. Funding for import and export, spot and forward exchange transactions, by collecting foreign and domestic currency deposits loan opening, cash management services, support to foreign projects, pioneering banking services in foreign countries, in the issuance of securities underwriting (underwriting) It özgü duties such as serving as a duty, making international credit arrangements, and being a correspondent bank.
