Origin of the Term
‘Bank’
The English term ‘Bank’
is derived from-
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The Italian word ‘banco’
The Latin word ‘bancus’
The Greek word ‘banque’ or
The French word ‘banque’
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Which means a bench
|
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The German word ‘banc’ / ‘banck’
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Which means a joint stock / common
fund (heap of money)
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Classification of
commercial banking on the basis of structure of commercial banking
/ Commercial banking system:
§ Group
banking / Holding company banking:- Group
banking is a system under which a
group of banks separately incorporated are bought under the control of a
holding company.
§ Chain
banking:- it is a
system under which a number of
separately incorporated banks are brought under common control by a device
other than holding company, say, through a group of persons purchasing share
and controlling a number of independent banks or through inter-locking of
directors.
§ Correspondent
banking system:- it is a system under which units banks
are linked with big correspondent banks.
§ Branch
Banking / Delocalized banking:- an individual bank
carries on banking business with a network of branches spread all over the
country.
§ Unit
banking / Localized banking:- it is a system under
which an individual bank carries on banking business through a single office.
§ Mixed
banking:- Commercial banks provide both short term and long
term loans. Here bank plays the dual role of commercial banking and industrial
banking.
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