What Are Banks By Ownership?

Private bank is the bank which is formed as a private company which is run by a group of persons, relatives or friends not exceeding 50 in number. Such banks include merchant banks, discounting and accepting houses. Public banks are established under companies Ordinance 1984 and enjoy public investments. Most of the commercial banks are founded as public banks and public companies. Nationalized banks are the ones which originally acted as public company and later were taken by the government. In 1974, all major commercial banks in the private sector were nationalized. Partnership bank is established under a partnership act 1932.

The capital is brought in by partners whose minimum number is 2 and maximum 10. Statutory bank comes into existence under the statue of a legislative assembly. Chartered bank may be organized as a chartered bank which is formed by the order of the king or queen of a country.  Bank of England is the best example. Bank organized under cooperative societies are called cooperative banks. They work on mutual cooperation of the members.