2. 1. Commercial Banks
- Function: Accepting deposits, providing loans,
and offering a wide range of banking services to
individuals and businesses.
- Purpose: To facilitate the flow of money and
credit in the economy, support economic growth,
and meet the financial needs of customers.
3. 2. Central Banks
- Function: Regulating the monetary policy,
controlling the money supply, and overseeing the
banking system of a country.
- Purpose: To maintain price stability, promote
financial stability, and ensure the smooth
functioning of the financial system.
4. 3. Investment Banks:
- Function: Assisting companies in raising capital,
providing advisory services, and conducting trading
activities.
- Purpose: To help businesses access capital
markets, facilitate mergers and acquisitions, and
enable the efficient allocation of financial resources.
5. 4. Retail Banks
- Function: Offering banking services directly to
consumers, such as savings accounts, checking
accounts, and personal loans.
- Purpose: To meet the everyday financial needs of
individuals, including deposits, lending, and
payment services.
6. 5. Cooperative Banks
- Function: Providing banking services to their
members, who are typically united by a common
bond, such as a community or occupation.
- Purpose: To offer financial services to their
members at competitive rates and promote financial
inclusion within their communities.
7. 6. Regional Rural Banks
- Function: Providing banking services to the rural
population, with a focus on agricultural and small-
scale industries.
- Purpose: To support the economic development
of rural areas and improve access to financial
services for underserved communities.
8. 7. Industrial Development
Banks
- Function: Providing financing for industrial
development and growth, often targeting specific
sectors or industries.
- Purpose: To support the industrialization and
economic development of a country by channeling
funds to productive investments.
9. 8. Private Banks
- Function: Offering personalized banking and
wealth management services to high-net-worth
individuals.
- Purpose: To provide tailored financial solutions
and advisory services to affluent clients, helping
them manage and grow their wealth.
10. 9. Universal Banks
- Function: Combining the services of a commercial
bank with investment banking and other financial
services.
- Purpose: To offer a comprehensive range of
financial products and services, catering to the
diverse needs of both individual and corporate
clients.
11. 10. Islamic Banks
- Function: Operating based on Islamic principles,
avoiding interest-based transactions and focusing
on profit-sharing and asset-backed financing.
- Purpose: To provide Sharia-compliant financial
services to individuals and businesses, in accordance
with Islamic law and ethical principles.
13. 1. Investment Companies
- Function: Pooling funds from investors
to invest in a diversified portfolio of
securities.
- Purpose: To provide investors with
access to a professionally managed
investment portfolio, allowing for greater
diversification and potential for higher
returns.
14. 2. Insurance Companies
- Function: Providing risk protection by
pooling funds from policyholders and
paying out claims when insured events
occur.
- Purpose: To help individuals and
businesses manage and mitigate various
risks, such as life, health, property, and
liability risks.
15. 3. Mutual Funds
- Function: Collecting money from
multiple investors and investing in a
diversified portfolio of securities.
- Purpose: To provide investors with
access to a professionally managed
investment portfolio, offering diversification
and potential for higher returns.
16. 4. Venture Capital Firms
- Function: Providing capital and
expertise to startups and small businesses
with high growth potential.
- Purpose: To support the development
and expansion of innovative companies,
with the aim of generating high returns on
investment.
17. 5. Microfinance Institutions
- Function: Offering financial services,
such as small loans, savings, and insurance,
to low-income individuals and small
businesses.
- Purpose: To promote financial inclusion
and empower underserved communities by
providing access to financial services.
18. 6. Credit Unions
- Function: Providing banking services,
such as savings accounts, loans, and credit
cards, to their members.
- Purpose: To offer financial services to
their members, who are typically united by a
common bond, such as employment or
community.
19. 7. Pension Funds
- Function: Collecting contributions from
members and investing the funds to provide
retirement benefits.
- Purpose: To ensure that individuals have
adequate financial resources for their
retirement.
20. 8. Brokers
- Function: Facilitating the buying and
selling of financial securities, such as stocks,
bonds, and derivatives.
- Purpose: To connect buyers and sellers
of financial instruments, enabling market
transactions and providing access to
financial markets.
21. 9. Financial Technology (FinTech)
Companies
- Function: Using technology to provide
innovative financial services, often
bypassing traditional financial institutions.
- Purpose: To offer more efficient,
convenient, and accessible financial services
to consumers and businesses.
22. 10. Peer-to-Peer (P2P) Lending
Platforms
- Function: Connecting borrowers and
lenders directly, without the involvement of
a traditional financial intermediary.
- Purpose: To provide an alternative
source of financing for borrowers and
investment opportunities for lenders, often
at more favorable terms.
