As the principle on which banks are classified?

Credit institution may establish such legal forms - a society that has limited liability, joint stock company, as well as the company with additional liability.

The essential characteristics of credit institutions is the fact of their existence, as commercial entities, and the ability to perform banking transactions, acting on a license issued by the Bank.

Based on the banking operations, which are engaged in the implementation of credit institutions, they are divided into non-bank banks and credit organizations. And the more common is the banks.

Currently, the bank provides a definition of credit institution, which owns the exclusive right to exercise such banking operations:

- Placement of funds at its own expense and on its behalf solely on the terms of payment, repayment and maturity;

- Attraction of financial resources in deposits from legal entities and individuals;

- Opening a bank account of physical or legal entity and its management.

Banks are divided depending on the size of the share capital, the type of banking transactions, the volume of transactions and the territory that is served by the bank.

Banks may be a joint-stock or those in which the authorized capital divided into shares.

In addition, the distinction is made between specialized and universal banks. For universal banks is characterized by the presence of licenses to carry out virtually all types of banking transactions and operations, and specialized banks differ possibility to carry out only some of the banking operations, for example, savings, investments or mortgages.

Based on the volume of those transactions that occur in the bank, as well as the amount of capital, absolutely, all commercial banks can be divided in medium, large and small.

With regard to non-bank organizations, their specialty is to conduct certain operations, which include mutual credit, bond issues to the state and corporations, as well as consumer loans and mortgages.