Definition

Banking System

Banking system refers to the foundation of banking institutions classified on the basis of functions namely, central bank, commercial banks, and development finance institutions and so on.

According to the Encyclopedia Britannica, structure of the banking system refers to the system of banking based on organized and techniques such as: Branch banking, Unit banking and Hybrid system of banking i.e. mixture of the two. It may also include banking techniques such as: Deposit banking, Investment banking and Merchant banking, mixed banking and so on.

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