Mortgage Bank/Building Society
A mortgage bank is a financial institution that specialises in granting long term loans to individuals and corporate bodies for building purposes. Such loans are repaid in installments and can be spread over several years. It is also called building society. It is a financial institution established for the acceptance of fixed deposits from members of the public with the aim of encouraging them to build their own houses by offering them long term loans.
1. Outline the instruments used by central bank to control commercial banks
2. Mention three functions of Merchant banksView Answers