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Lendind Proced of Ztbl

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Submitted By fidamuhammad
Words 7114
Pages 29
ure CHAPTER- 1
INTRODUCTION
1.1 NEED FOR BANKS
With the increase in population and trust of people in the banks, the banks started to perform many other functions to facilitate the different sectors of economy in addition to their basic functions of accepting deposit and lending money.
Because of expansion in banking business, it became very difficult for banks to perform the entire functions just under one roof. So the banking experts decided to divide the banks according to their importance and functions.
1.2 TYPES OF BANK
1) Chartered Bank:
These are the banks, which are established by the order of king (Royal Order). They perform the same functions like other commercial banks or the function which are laid down in their charter. For instance, Chartered Bank of England.
2) Banks according to registration:
i) Scheduled Banks
These are the banks, which are registered in the list of central bank. They are bound to follow the instructions and policies of central bank. For instance, United bank, Allied bank, MCB bank etc. ii) Non-scheduled Banks
These are the banks, which are not registered in the list of central bank. They are not bound to follow the instructions and policies of central banks.

3) Banks according to ownership:
i) Government Banks
These are the banks, which are owned by central or provincial government of any country. The government is responsible to frame and control the policies of these banks and it has also right to receive all benefit and profit. ii) Private Banks
These are banks, which are owned by the people of any country. The people (shareholder) elect the directors to perform and control the policies and they also share the profits or losses of these banks.
4) Money Creative banks:
i) Central Banks:
Every civilized country has its own central bank. Its main function is to manage the monetary systemof the country

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