Classification of Bank on the basis of Organizational Structure
At present, the word “Bank” is considered as an economic term in all countries. Banks are the financial institutions that are licensed to deal with money and its substitutes by accepting time and demand deposits, making loans, and investing in securities.
According to organizational structure, banks are classified into five categories.
Unit Bank: Which bank is directed and managed from a single office is called the unit bank. These banks have no other branch. In the USA unit banking is popular.
Branch Bank: In this banking system banks have many offices located in different places. Multiple office banking is branch banking. Another name of branch banking is British Banking.
Chain Bank: When some banks work together to generate more capital then it is called a chain bank. But they operate separately and they are independent.
Group Bank: Sometimes a financial institution buys a maximum share of some small bank and takes control of them. This is called group banking. The controlling bank is holding the company and the controlled banks are known as a subsidiary company.
Classification on the basis of scheduling
Banks can be classified on the basis of schedule.
Scheduled Bank: Banks that are enlisted to the central bank are called the scheduled bank. These banks are directed according to laws and rules provided by the central bank.
Non-scheduled Bank: These banks are established by the Banking Act-1991 but not enlisted by the central bank. Non-scheduled hank cannot enjoy the advantage provided by the central bank.
On the Basis of Partnership form of Organization Structure
- Sole Proprietorship Bank:
This bank is a single ownership Bank in the world. This bank which is owned by one and is operated by him is called Sole proprietorship Bank. There have a lot of facilities in a single ownership bank. There has a high-risk rate because of getting full reliably only for single person ownership.
- Partnership Bank:
The banking system that is responsible for the country’s conventional partnership law and this banking acts system are called a partnership bank. The bank facility is the best for anyone.
- Joint Stock Company Bank:
The bank which is operated, controlled, produced by banking company acts even these banks are called by Joint-stock company banks. The owner of these banking Shareholders may be the government and any general person. A joint-stock company is the best part of the bank on the Basis of Organization Structure.
- Co-Operative Bank:
The banks which are formed, operated and controlled by the existing cooperative law and banking laws, are called co-operative banks. A co-operative bank has been established in the specific city of the country. This bank is a part of small banks.
- State-Owned Banks:
The banks which are owned by the government and the direct control of the government are called State Ownership Banks. The state-owned bank is the best part of the bank on the basis of organizational structure. Example: Bank of China (BOC), Industrial and Commercial Bank of China (ICBC), Bangladesh Bank (BB), etc.
