The-definition.com

Definition

Specialized Banks

Definition (1):

Specialized Banks are banks that concentrate mainly on financing specialized economic and social activities. Specialized activities may be small and cottage industries financing. Financing the rural asset less and landless people etc.

Definition (2):

“the specialized banks are defined as those banks that are banking operations that serve a specific type of economic activity, such as industrial activity or agricultural or real estate, in accordance with the resolutions of their establishment, which does not have to accept demand deposits of the main aspects of its activities.”

Definition (3):

These banks are specialized in financing specific economic sectors such as agricultural, industrial, real estate, mortgage, rural development, and the like.

Bangladesh Krishi Bank, Bangladesh Development Bank Limited, Rajshahi Krishi Unnayan Bank and Grameen Bank (G.B.) of Bangladesh are some examples of Specialized Bank.

Generally, specialized banks have the following characteristics:

  • Deal with a certain type of customers
  • Do not depend on the financial resources on individuals’ deposits
  • Depend on the capital and the issued bonds
  • Work on the sector-specific development
  • Implement the policies of the state
  • Organize work in a specific sector
  • Participate in the advancement of the development policies of the sector.
Share it:  Cite

More from this Section

  • Parity conditions
    Parity conditions— in the context of international finance, a set of basic economic ...
  • Portfolio diversification
    Portfolio diversification is the spreading out a bank’s credit accounts and deposits ...
  • Nonforfeiture law
    Nonforfeiture law is a state law requiring insurance companies to provide at least a minimum ...
  • Financial derivatives
    Financial derivatives is the instruments that have payoffs that are linked to previously ...
  • International Transaction
    The export of merchandise goods such as trucks, machinery, computers, telecommunications ...