Types of Commercial Banks

There are many commercial banks in Nepal but have their capital right to a specific person only and they run the banks in their personal decision. But there also exist some banks which have other systems and men to circulate them. There are three types of commercial banks and they are:

Private sectors:

Commercial banks also run under the instruction of a particular person because they have their capital investment. So in that commercial organization, only a particular person runs the whole bank because of their more percentage of investment. Individual and private businesses hold a large percentage of shares due to that, they do see their sway in the institution.

In Nepal also, there are many private sectors commercial banks like Sanima bank, Prabhu Bank, NIC Asia Bank, NCC Bank, Everest Bank, and many others else. In all these banks, a large amount of capital investment is held by any individual and particular group.

The recruitment and selection of an employee for the vacant post are acted by nepotism rather select the best candidates. These banks mostly register banks as limited companies to collect more capital by announcing the share. Although, the decision-making is done by some particular person.

Public sectors:

Public sectors are the combination of capital by both parties that is the government and private sectors too. It is taken as the formation of both capitals which helps to stand giant. The government also invests its amount and capital to operate the banking sector.

In some sectors, the government self invests eth huge amount to make the bank full of their rights. These are also taken as governmental commercial banks due to a large part of the amount being invested by the government. Mainly it is seen that the government holds equity of 51% or more and the rest percentage of the equity is held by the private sector.

In it, all the systems are operated by the coordination and cooperation of both sectors through mutual meetings and suggestions or discussions.  Such public sectors or governmental commercial banks are the Agricultural development bank, Rashtriya Banijaya bank, Nepal bank, and others too.

Foreign sectors:

It also defines the commercial banks which are established and operate under the instruction of foreign investors. The banks are operated under the investment of commercial banks because its investor is from outside the country of Nepal.

The decision and system are also operated according to them. It has its head office in some other countries and operates its banking channel in other countries as a multination company. This is also taken as foreign investment in  Nepal. The foreign sectors’ commercial banks are Everest bank,  SBI bank, Standard chartered bank, Nabil bank, and others too. All commercial banks deal with fulfilling the financial requirement of the public.