About banking defination,types or methods, Study notes of Business Economics

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2-september-

BANKING

Business English

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BANK Defination: Bank meaning relates to such a financial institution that works in extending credit to its customers as well as storing their deposits. These deposits are further used by banks to grant loans to customers. It offers multiple services including saving accounts, checking of balances, and providing certificates of deposits, among others. Introduction: A bank is an institution which deals with money and credit. It accepts deposits from the public and makes the fund available to those people who needed money, and helps in the remittance of money from one place to another. Purpose of Bank: Main purpose of banks  Keep money safe for customers  Offer customers interest on deposits, helping to protect against money losing value against inflation.  Lending money to firms, customers and homebuyers.  Offering financial advice and related financial services, such as insurance

 Public Sector Banks: These banks are under the control of the State Bank of Pakistan. Public Sector banks in Pakistan are:  The Bank of Punjab  First Women Bank Limited  Bank of Khyber  Corporation Bank  Sindh Bank Limited  Private Sector Banks Individuals or organizations have significant shares in private sector banks. Private Sector Banks working in Pakistan are vast in number. Some of them are:  Bank Al-Habib  NIB Bank Limited  United Bank Limited  Askari Bank  Foreign Banks These banks are not Pakistani banks, but they have branches in Pakistan. These are the international level banks 2.Islamic Bank : Pakistan is an Islamic country, so Islamic banking is prevalent in the nation. Banks having Islamic banking in Pakistan are as follows.  Meezan Bank Limited  Dubai Islamic Bank  Bank Alfalah Islamic  Askari Bank Ltd.  National Bank of Pakistan

3. Industrial Bank Industrial Development Bank of Pakistan (IDBP) is one of Pakistan's oldest development financing institutions and was created with the primary objective of extending term finance for investment in the manufacturing sector of the economy.

Question no: 2:

 Define central bank and its function in details? The State Bank of Pakistan is the central bank of the country. A state bank is a financial institution that a state has chartered primarily to provide commercial banking services. A state bank is not the same as a central or reserve bank; these institutions are primarily concerned with influencing a government's monetary policy. State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups:  the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy  the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. Functions of state bank/central bank: The state bank of Pakistan also perform both the traditional and development functions to achieve macroeconomic goals.