Banking System Around The World (2015)
Introduction: In the age of 21st century almost every people in the world are familiar with banks directly or indirectly. And banks are operating their activities all over the world. There are many types of banks
Introduction: In the age of 21st century almost every people in the world are familiar with banks directly or indirectly. And banks are operating their activities all over the world. There are many types of banks
such as Commercial bank, Investment bank,
Islamic bank etc. I am going to discuss about the banking system around the
world very shortly for just getting slight knowledge about it. Although the
banking system are almost similar around the world but I found the major four
group of Banking system all over the world. Here is my discussion below.
Banking system around
the world:
Dissimilarities exist in the scope of commercial banking
activities in different countries such as communist, capitalist, Islamic etc.
We can divide the major commercial banking systems in different countries in
the following Four group:
1. Anglo
–American banking system: It is
prevalent in most of the countries including Bangladesh. There are differences between commercial
banking and investment or merchant banking. Separate merchant bank and
commercial banks are established and
commercial banks do not operate
merchant banking.
2. German Universal Banking System: This
system is prevalent only in German. There is no difference between commercial
banking and investment banking in this system. Commercial banks can operate any
type of business operation. It can buy up to 40% share of corporate firms and
participate in the ownership of the firm. It monitor any corporate in two ways:
firstly as creditor and secondly as director or owner. It is also called
universal banking system.
3. Japanese main banking
system: There are difference between commercial banking and investment
banking but commercial banks can
be owner of corporation. This is hybrid of (1)and (2)and commercial banks
do not operate invest banking but can purchase shares of the
company up to 5% and monitor the company by directorship.
4. Indian lead Banking
System: It is developed in India by the end 1960. Every lead banks
performs extra responsibilities with the existing commercial banking
System. The purpose of this system is to increase the rate of savings,
equitable allocation of resources on the basis of some criteria to various
sectors of the economy and to increase efficiency in investment and
production. It divides the country’s geographical area in different
segments and only one leader bank is selected for each area. That area’s
each and every commercial bank and other operating financial institution’s
loans activities are transacted according to the advice and guidelines of
the lead bank.
Conclusion: Banks contributes the major role to develop the growth of a country. Those
are major four major banking systems around the world. The banking system of
others country in the world are almost similar with this four group.
By Maria
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