The banking system that combines deposit banking with investment banking is known as Mixed banking. The mixed bank receives deposits from public and provides short term, medium term and long term loan to industries. Mixed banking system refers to that banking system under which the commercial banks make long term loans to industry.
In mixed banking, the commercial banks promote the industrialization of their country and come forward to provide the initial capital to the newly started industries. Alongside the task of providing capital to industries, mixed banks also perform the functions of deposit banks.