After studying this chapter you will be able to understand: History of Pakistan banking, introduction to banking, saving account, current account, fixed deposit account, what are the types of bank accounts? What are the types of negotiable instruments? | Lecture 4 Revision Lecture 3 History of Pakistan banking Introduction to banking Revision Lecture 3 Q1: What are the types of bank accounts? Q2: What are the types of negotiable instruments? Revision Lecture 3 A:1 Saving account Current account Fixed deposit account Revision Lecture 3 A:2 Promissory note Bill of exchange Cheque Types of Banks Types of banks There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agricultural, business, profession, etc. The banking institution in Pakistan may be divided into various types on the basis of their functions. Types of banks Central bank Commercial banks Development banks Co-operative banks Specialized banks Central Bank Central bank A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central Bank. Such a bank does not deal with the general public. It acts essentially as Government’s banker, | Lecture 4 Revision Lecture 3 History of Pakistan banking Introduction to banking Revision Lecture 3 Q1: What are the types of bank accounts? Q2: What are the types of negotiable instruments? Revision Lecture 3 A:1 Saving account Current account Fixed deposit account Revision Lecture 3 A:2 Promissory note Bill of exchange Cheque Types of Banks Types of banks There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agricultural, business, profession, etc. The banking institution in Pakistan may be divided into various types on the basis of their functions. Types of banks Central bank Commercial banks Development banks Co-operative banks Specialized banks Central Bank Central bank A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central Bank. Such a bank does not deal with the general public. It acts essentially as Government’s banker, maintains deposit accounts of all other banks and advances money to other banks when needed. Central bank It provides guidelines to other banks whenever they face any problem. It is therefore known as the banker’s bank. State bank of Pakistan SBP is the central bank of our country. Central bank It advises the government on monetary and credit policies and decides on the interest rates for bank deposits and bank loans. In addition, it also determined the foreign exchange rates. Another important functions of the Central bank is issuance of currency notes and regulations of their circulation in the country by different methods. Commercial Banks Commercial banks Commercials banks are banking institutions that accept deposits and grant short-term loans and advances to their customers. It also give medium and long-term loan to business enterprise. Nowadays, some of the commercial banks are also providing housing loans to individuals. Commercial banks Commercial banks are of three types: .
