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.
“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.”
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.