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Types of banks

August 5, 2009
Banks’ activities can be divided into

Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks.

Corporate banking, directed at large business entities; Corporate Banking represents the wide range of banking and financial services provided to

domestic and international operations of large local corporate and local operations of multinationals corporations.

Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizable assets.

The term “private” refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated

bank advisers. eg. CitiGroup, HSBC.

Investment banks help companies and governments raise money by issuing and selling securities in the capital markets, as well as providing advice

on transactions such as mergers and acquisitions. eg. ABN AMRO, Banc of America Securities, Barclays Capital, Bear Stearns, BNP Paribas, Citigroup.

Central banks are normally government owned banks, often charged with quasi-regulatory responsibilities, e.g. supervising commercial banks,

or controlling the cash interest rate. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis.

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