Difference between Commercial Bank and Development Bank | Types of Banks
Difference between Commercial Bank and Development Bank
Banks that are involved in currency exchanges, saving deposits, lending loans and other form of commercial transactions are considered as Commercial Banks.
Banks that are mainly established to develop infrastructure of the country by providing financial ,technical, administrative and managerial assistance for special sector are considered as Development Banks.
Commercial Banks Vs Development Banks |
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| Basis | Commercial Banks | Development Banks |
Meaning and Definition |
Banks that are involved in currency exchanges, saving deposits, lending loans and other form of commercial transactions are considered as Commercial Banks. | Banks that are mainly established to develop infrastructure of the country by providing financial ,technical, administrative and managerial assistance for special sector are considered as Development Banks. |
Main Objectives |
The main objective of Commercial Banks is to promote trade, commerce and industry. | The main objective of Development Banks is to promote agricultural sectors, industrial sectors and rural areas of the country. |
Nature |
These banks are considered as ordinary financial institution. | These banks are considered as specialized ,multipurpose financial institution. |
Loans Provision |
These Banks generally provide short term and medium term loans. | These Banks generally provide medium and long term loans. |
Exchange |
These banks are involved in exchange of foreign currency. | These banks are not involved in exchange of foreign currency. |
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(Founder of Management Notes)
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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