Banks, their history and types
Last Updated: 2023-07-27
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Banks, their history and types
Although the new banking era has a recent history, its foundation in the same logic goes back 3,000 years. It is said that the Sumerians were the first to conduct banking transactions, and was one of the ancient civilizations.
Do you have any information about the banks that you touched on in relation to your business and in terms of money, what is meant by these banks and how were they established?
Thanks to these financial institutions, a lot of banking transactions like investing, saving, storing money, using loans, transferring money and salaries take place in them.
And as these operations continue daily, given their very important place in our lives, banks have taken a large space in the field of finance with many methods developed by banks, especially commercial banks. The reason for this is that companies use banks to carry out their daily activities smoothly and quickly. This banking transaction is considered as a first step to the present day, as the forms and types of banking circulation have changed and have different forms. You can see that there are many types of banks at the point where we are today, and they each offer different transactions. Most of us today have a bank account or at least we have done a banking transaction through the bank, we may sometimes subconsciously think about choosing these banks in any transaction. When inquiring about the importance of banks and their different names, their purpose and what their main tasks are, we are on a list of these types of banks, which we may see providing the same services, but differ in their dealing policy and how their profits and benefits are.
Types of banks in Turkey:
1. Commercial Banks (Depository): Their first objective is to make a profit in the face of the services provided by the commercial banks. They are called commercial banks because they coincide with the profit-taking mode of trade. It is also called deposit bank.
2. Investment Banking Services: The primary purpose of this type of investment banking is to provide long-term funds to the public and private sectors. Therefore, it is highly preferred by commercially operating companies, as it offers various methods of collecting deposits required for long-term loans.
3. Banks for Development Banking: Every country in the world has development processes. Development banking services are also used in developing countries, and even in developed countries, because they have a serious role in the development stage, development banks and they support in all areas of entrepreneurship from start to finish from small companies to large companies. While they achieve their support, these banks give priority to the industrial sector and have many contributions to its development. The main purpose of this type of bank is to provide long-term resources to all large and small firms in industrial trade.
4. Participation banking (without interest): it enjoys an important position, moreover, it has gained importance in many Islamic countries. The reason for this is Islam's prohibition of interest in this way. In the financial market, these banks are required for clients and investors who were interested in Islam's prohibition of interest. The first example is the Mit Ghamr Savings Bank, which was established in Egypt in 1963. Starting with this bank, these banks spread to all interest-free Muslim countries.
5. Coastal banking: which is also called offshore banking, has many advantages and provides many options not available in other banks, used by commercial institutions in particular while conducting their transactions.
6. Central Bank: Finally, let us come to the Central Bank, the bank of banks has a different structure from other banks and takes on important duties for the country and is considered the bank of the state. If you enter the Central Bank website, you will see the phrase “Maintain and guarantee price stability”. Central banks have an independent structure, in other words, it has a structure that is free from political factors and enables the economy of the country to reach a stable economic system.
Edited by Mersat Real Estate Team©
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