Banks are classified according to various criteria, with their ownership and activity being the most relevant.
According to your property
According to the origin of their capital they are classified into:
- Public banks: They are those whose capital is contributed by the State. Private banks: They are those whose capital is contributed by private shareholders. Mixed banks: Its capital is formed with private and official contributions. Multilateral banks. Its capital is made up of the contribution of several states under an international agreement. Examples of this type of bank are the World Bank and the Inter-American Development Bank.
According to your activity
Depending on the type of type of operations they perform, they have:
- Commercial banks. Those who operate with the general public and earn through financial intermediation and consumer credit primarily. Its regular operations include checking account deposits, savings accounts, loans, collections, payments and collections for third-party accounts, custody of securities and securities, safe deposit box rentals and financing. Investment banks. They are organizations that insure and distribute new securities investments and help businesses obtain financing. Development banks. They have a specific credit purpose. They include, development banking, mortgage banking, etc. Central banks. It is the monetary authority par excellence in any country that has developed its financial system. It is almost always a state institution that has the function and the obligation to direct the monetary policy of the government. Within the functions of the central bank are:
- Issuance of legal tender exclusively. Banking regulation and bank reserve management. It is the government's financial advisor and maintains its main accounts. It is in charge of guarding the country's foreign exchange and gold reserves. Lender of last resort in the system Financial.Determines the exchange ratio between the country's currency and foreign currencies.Manage public debt.Execute and control the country's financial and banking policy.
Doyle, Fryer and Cere (p.113) classify them into three basic types, according to their micro or macro environment:
- The commercial bank typically operates at the microeconomic level to assist individuals and businesses with loans, checking and savings accounts, etc.; Microfinance offers small loans to those who lack access to traditional banking. The central or national bank is responsible at the macroeconomic and macrobank level for national banking, the stability of the national currency and exchange rate policy. The development or development bank, also at the macroeconomic level, is dedicated to reducing poverty in a country or region, regional economic and monetary integration, and national or regional socio-economic development.
Díez (p.167) classifies them only in two types, according to their proximity to the general public:
- Commercial banks. Those of a lifetime, "those with offices", such as BBVA, Banco Popular, Banco Santander, etc. Investment banks. Like JP Morgan, Goldman Sachs, Morgan Stanley, UBS or Credit Suisse. Whose offices do not serve the general public since their businesses, investment banking, asset management, structured products and treasury, among others, turn out to be unknown to the majority of ordinary citizens.
Bibliography
- Diez Torca, Ignacio. How to understand today's finances. Antoni Bosch editor, 2011Doyle, Michael; Fryer, T. and Cere, Ronald. Commercial success. Cengage Learning, 2010.Escoto Leiva, Roxana. Commercial Bank. EUNED, 2001.
