Answer to Question #155660 in Management for Prabhdeep

Question

Difference between private and foreign commercial banks ? (At least 10 points of difference please)

Answer 1

the following are the differences between commercial banks and private banks;

1. commercial banks have a wider customer base to improve their business while private banks serve as a select clientele.
2. corporate holding companies operate commercial banks, and these companies may own one or more than a few banks while private banks give protection to maintain the assets of clients as their main concern.
3. in terms of pension commercial banks depends on which sector you are working at while in private banks no pension is provided.
4. in terms of job security, it depends upon the performance or there can be no security at all while in private banks security of your job depends on performance.
5. commercial banks generate their money as it provides loans to people and they earn interest income from those loans while private banks provide financial services to high net worth individuals who have enormous amounts of assets.
6. commercial banks offer loans to businesses of all sizes while private banks offer loans for private banking clients only.
7. commercial banks specialize in serving credit, investment,, and other financial needs while private banks serve only their individuals and families only.
8. commercial banks are a crucial part of the growth of the economy all over the world while private banks are limited not all over the world.
9. commercial banks collects checks and bills of exchange on the behalf of their customers through clearing house facilities while private banks rely on personal issues only.
10. commercial banks are the ones which approaches central banks to rediscount bills when it comes to private banks are not eligible to approach central bank on matters partaining rediscounting of bills.