They are different types of banks that exist on the market; but currently we will look at the following :

Central Bank Commercial Bank Development Bank

Investment Bank Custodian Bank Off shore Bank Cooperative Bank

Characteristic :

A public institution/ Act as the government bank.

Responsibilities :

Issues the countrys currency. Regulates and Control the nation's entire

money supply.

Implement monetary policy. Determine Interest rates. Manage the country's foreign exchange and gold reserves and the Government's stock register.

Regulate and supervise the banking industry. Set the official interest rate.

Manage the countrys exchange rate. Central banks in most developed nations are independent in that they operate under rules designed to render them free from political interference. Examples include the European Central Bank (ECB), the Bank of England, and the Federal Reserve System of the United States.

A commercial bank (or business bank) is a type of financial institution and intermediary. It is a bank that provides transactional, savings, and money market accounts and that

accepts time deposits.

Some use the term "commercial bank" to refer to a bank or a division of a bank primarily dealing with deposits and loans from corporations or large businesses. In some other jurisdictions, the strict separation of investment and commercial banking never applied.

A commercial bank (or business bank) is a type of financial institution. It provides : Savings, Transactional and money market accounts and that accepts time deposits.

Commercial banks engage in some of the following activities:

Process payments by way of telegraphic transfer, internet banking, or other means

(Ripps)

Issue bank drafts and bank cheques

Accept money on term deposit

Lend money by overdraft, installment loan, or other means Provide documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments

1. Banks promote capital formation 2. Investment in new enterprises

3. Promotion of trade and industry

4. Development of agriculture

5. Balanced development of different regions

6. Influencing economy activity

7. Implementation of Monetary policy

8. Monetization of the economy

Development banks are commercial banks

that operate with a mission to generate

economic development in low- to moderateincome (LMI) geographical areas and serve residents of these communities.

Investment banks function as a liaison agent

between corporations or governments that

want to attract investment capital and investors who have money to buy securities. Investment

banking covers a wide range of functions

within the financial services industry, but generally focuses on equity investments rather than credit extensions.

Investment banks generate revenue by charging a fee for various transactions such as :

Offering initial public offer (IPOs) Mergers and acquisitions, divestitures, liquidations, structured or project finance .

Private placements (the sale of financial instruments to a targeted group of investors), and various forms of asset-backed

Lending activity (such as the acquisition of new equipment or plants as collateral for a loan).

A Custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not likely to engage in

"traditional" commercial or consumer/retail

banking such as mortgage or personal lending, branch banking, personal accounts, ATMs and so forth.

Hold in safekeeping assets/securities such as

stocks, bonds, commodities such as precious

metals and currency (cash), domestic and foreign

Arrange settlement of any purchases and sales and deliveries in/out of such securities and

currency

An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. While the term originates from the Channel Islands being "offshore" from the United Kingdom, and most offshore banks are located in island nations to this day, the term is used figuratively to refer to such banks regardless of location, including Swiss banks and those of other landlocked nations such as Luxembourg and Andorra.

Greater privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act) Low or no taxation (i.e. tax havens) Easy access to deposits (at least in terms of regulation)

Protection against local political or financial instability Offshore banking has often been associated with the underground economy and organized crime, via tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest.

A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons

belonging to the same local or professional

community or sharing a common interest. Cooperative banks generally provide their members

with a wide range of banking and financial

services (loans, deposits, banking accounts...).