BANKING AND NON BAKING

BANKING SECTOR

The banking sector is the section of the economy devoted to the holding of financial assets for others, investing those financial assets as leverage to create more wealth and the regulation of those activities by government agencies

1-      Public banks
2-      Private banks
3-      Foreign banks

EXPLANATION

A      Public bank is a bank, a financial institution, in which a state or public actors are the owners. It is a company under state control

      The term private banking refers to a customized line ofbanking & financial services offered to private individual banking clients that earn high levels of income and/ or owning sizable investment assets

A     foreign bank is a type of International Bank that is obligated to follow the regulations of both the home and host countrie



     NON BANKING SECTOR 

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance

1-      Investment bank
2-      Development bank
3-      Islamic bank
4-      Insurance bank
5-      Micro finance bank
EXPLANATION

1-    An investment bank is typically a private company that provides various finance-related and other services to individuals, corporations, and governments such as raising financial capital by underwriting or acting as the client's agent in the issuance of securities

2-      Financial institutions dedicated to fund new and upcoming businesses and economic development projects by providing equity capital and/or loan capital


3-      Islamic banking, also known as non-interest banking, is a banking system that is based on the principles of Islamic, or Shari'ah, law and guided by Islamic economics


4-      Insurance that guarantees the security of deposits in a bank. In the U.S., bank deposits up to a certain amount are insured by the Federal Deposit Insurance Corporation (FDIC)



Microfinance is a banking service that is provided to unemployed and low-income individuals who have no other means of gaining financial services




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