Banking

Bank is a financial institution, which produces various kinds of operations with money and shares. Also, banks provide financial services to government, legal entities and private person. Bank is a legal entity of any form of property which:

- Created for profit,

- Has the right to conduct banking operations,

- Has the exclusive right to attract the funds of legal entities and private persons for its subsequent placement by bank’s name, and also for opening and maintaining bank accounts of legal entities and private persons,

- Works on the basis of special license by state bodies (for example Bank of Russia)

- Has no right to carry out industrial, commercial, insurance activities.

There are several types of banks:

National banks, which carry out state regulation of banking sphere and creation of money.

commercial banks, which carry out banking business;

universal banks, which carry out all the major types of banking operations;

investment banks which specialize in investments, mostly in shares;

savings banks, which specialize in raising public funds;

Sometimes the experts distinguish more two types:

"Retail bank" which works with the private persons.

"Captive bank" ("pocket bank") - a subsidiary bank of a large industrial or bank structure, the main purpose of which is to serve the operations of the parent company.