Bank Services

Definition of a Bank:

A bank is a financial institution set up to handle financial transactions. Banks keep money and other valuable items for the government, firms, and individuals until they are needed.

It is an establishment for receiving, keeping, lending, or, sometimes, issuing money, and making easier the exchange of funds by checks, notes, etc.

The following are some of the different types of banks commonly found in Nigeria.

1. Central Bank of Nigeria: The Central Bank is a national bank that provides financial and banking services for its country’s government and commercial banking system

2. Commercial Bank: A commercial bank is a financial institution that provides various financial services, such as accepting deposits, offering savings account services, and issuing loans.

3. Merchant Bank: The term Merchant bank refers to a financial institution that performs specialised functions and is set up to cater to customers with a large volume of cash transactions. They conduct loan services, financial advisory services, fundraising services, etc for large corporations and high-net-worth individuals.

4. Mortgage Bank: A mortgage bank is a financial institution that specialises in granting long-term loans to individuals and corporate bodies for building purposes.

5. Development Bank: Development Banks are financial institutions that specialise in providing long-term credit or loans for projects in the areas of agriculture, commerce and industry.

6. Co-operative Bank: Co-operative banks are small financial institutions that offer lending facilities to small businesses in both urban and non-urban regions.

7. Community Bank: A community bank is a depository or lending institution that primarily serves businesses and individuals in a small geographic area.

8. Industrial Bank: An industrial bank is a financial institution that grants loans to individuals and companies that are associated with specific industry types.