Different types of banks

1. Retail banks: Retail banking operations include acceptance of smaller deposits, loan operations of smaller size and other banking activities suitable for low net worth people. It is also called mass banking.
2. Development banks: Banking operations including finance aimed at development of the economy may be called development banking. It includes finance and assistance for both, industrial and rural development. This is done by specialized institutions like BSB, BSRS, and BKB etc. Now-a-days this is also done by nationalized commercial banks

Brief discussion of banks Classification on the basis of function

1. Central banks: A central bank functions as a top controlling bank for all other banks of the country. It functions as controller of credit, bankers’ bank and enjoys the monopoly of issuing currency notes on behalf of the government. In our country Bangladesh bank enjoys these privileges.
2. Commercial banks: A commercial bank is essentially meant for providing short-term credit to trade and industry. In our country the role of commercial banks has undergone a revolutionary change. They are now providing credit in an increasing measure to agriculture, small scale industries and other weaker sections of the economy like small business, retail trade etc. There are about fifty commercial banks at the moment in Bangladesh.

Classification of the banks according to their functions

Banks these days provide a variety of services. They provide both short-term and long term credit. Their customers come from all walks of life from a small business to a multinational corporation having its business activities all around the world. The banks have to satisfy the requirements of different customers belonging to different social groups. The banking business has therefore