2.2.2 COMMERCIAL BANKS
These are credit establishments which has as a focus enhancing
financial services to the public, they have as goal the collection of deposits
in order to give them out as loans in order to finance the economic activity
(Microsoft Encarta, 2006)
Commercial banks play the following economic functions:
- they facilitate the formation and allocation of capital
- they transform the risk of financial assets
- They promote market efficiency (D. Carter, 2004) commercial
banks are easily the largest and the most diversified of the financial
intermediaries in terms of assets and liabilities. About the only major asset
that they do not hold is corporate stock, which law prohibits them for
acquiring (Foundations of Banking,2005)
2.2.3 INVESTMENT BANKS AND DEVELOPMENT BANKS
These are financial institutions which are concerned with
giving out loans which has to do with the financing of infrastructure in a
given area (Microsoft Encarta, 2006)
Investment banks are often compared with development banks.
Both institutions are specialised in investment. But their difference in the
range of their activities but it is important to note that investment banks are
concerned primarily where there are infrastructural problem while development
banks refers to the financing of industrial project in geographical areas where
there are development problems (Barth J.L, 1999)
2.2.4 RECONSTRUCTION BANKS
Reconstruction banks are financial institutions which enhance
funds for reconstruction and development to the country which they are engaged
(Rendall, 1978)). In today's world there are many calamities that can occur and
hamper the infrastructures of a country such as war, Tsumani, volcanic
eruption... it is the role of a reconstruction bank to allow loans to countries
in order for the lathers to reconstruct their country and develop necessary
industries achieve economic growth. Examples of reconstruction banks include
IBRD (international banks for reconstruction and development).
2.2.5 SAVINGS AND LOANS ASSOCIATIONS
For Bonacossi di Patti (2001), savings and loan or building
and loan associations are financial intermediaries, which accept savings from
the public and invest those savings mainly is mortgages loans. Today, savings
and loans associations (S and Ls) are very similar to bank. They have
continuous life as some loans are paid off, new loans are made. Traditional
distinction between banks and S and Ls are steadily blurring. Banks are today
more than ever before turning to real estate loans. The S and Ls are now
acquiring more liquidity than they formerly had and their system resembles the
banking system in a number of aspects. As explained below, they have their own
central banks from which they may borrow. Most S and Ls are growing in
popularity and this may be due to their low interest rate on borrowed funds.
2.2.6 MUTUAL SAVINGS BANKS
Honotran P.(1997) address that mutual savings banks issue
claims against themselves in the form of relatively small savings and time
deposits, and the recent years in form of negotiable orders of withdrawal (NOW)
accounts, which are legally payable on short notice. Their assets are
predominantly long term, with real estate mortgages comprising about two thirds
of their assets. They also hold modest amount of corporate bonds and united
values of Cameroon bonds of government.
| 
