What is Mortgage Bank?

These banks mainly deal in loans for the acquisition or construction of real estate against the security of mortgages. Quite a few such banks are operating in developed part of the world. Saving and Loans associations and farm-loan associations are some of the well known forms of the mortgage banks.

What is Saving Bank?

The basis purpose of these banks is to inculcated the habit of savings in the people. The saving banks deposits are not repayable upon only the written orders of the depositor but the depositor or his agent has to appear personally at the saving banks to make withdrawal and for this purpose he must present a pass book,a certificate of deposit or some similar documents to prove his right to receive payment post office saving banks and saving account at National Saving Organization are well known Operational Saving Banks in Pakistan.

What is Merchant Bank?

Merchant Banks are those which have been mainly financing the domestic and international trade in United Kingdom. During the late 18th and early 19th Centuries the trade between countries was financed by bills of exchange by well reputed merchant houses for which they would charge a commission for their service. Thus the business of excepting bills of exchange to finance the trade developed and gradually this business houses entered into other banking activities and became known as Merchant Banks.

Since all the commercial banks,in addition to other banking functions also deal in trade financing the term merchant banks has been gradually faded away.

What is Commercial Bank?

The Commercial Banks receive deposits from the general public which are repayable on demand upon written orders of the depositors. As their most distinctive feature the commercial banks maintain chequing accounts for the stituents.

The commercial banks are also distinguished for providing short term finance to trade,commerce and industry to enable these sectors to expand their productive activities.