The-definition.com

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.

Share it:  Cite

More from this Section

  • Bank statement
    A bank statement is a monthly statement/description from the bank that shows the depositor’s ...
  • Subjective risk
    Subjective risk uncertainty based on one’s mental condition or state of mind. ...
  • Call
    In banking call means a demand for payment under a loan or guarantee. ...
  • Currently insured
    Currently insured is a status of a covered person under the Old-Age, Survivors, and Disability ...
  • Value today
    Value today refers to spot foreign exchange transaction in which delivery and payment ...