Banks are the main source of the country’s economy and the difference between a state bank and a private bank is not great because all banks are working to raise the investment rate in countries.
It also monitors each client and their accounts doing business such as loans, investments and excess cash, as well as accrued profits or interest for clients and banks.
The difference between a state bank and a private bank
The difference between a state bank and a private bank is very simple.
As the general definition of a bank is an intermediary between capital and those who seek money or investment.
The word bank comes from French and Italian and means money to hold money.
The bank is an institution to maintain and increase funds or to manage and repay funds with loans to the needy.
Given the difference between a state bank and a private bank, state banks are banks that belong to the country in which the bank is established.
The capital of the bank is owned by the state, while private banks are owned by an individual, NGOs or specific organizations.
There are also mixed banks, which are partnerships between the state and institutions, and the largest share is given to whoever puts the capital.
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The difference between a bank and a bank
The difference between a state bank and a private bank has nothing to do with the difference between banks and banks.
Public bank and private bank differ from each other in terms of the owner.
As for the bank and the bank, there is no difference between them.
Whereas bank or bank is a word for any institution dedicated to dealing with money and lending.
But the only difference is the difference in language, all banking institutions are called banks and they are spread in the Arab countries.
The word bank is common in the western world, and the bank is the facility in which the loan process is completed, and the benefits of a bank or bank are as follows:
Make money deposits.
Investing money and deposits.
Credit for large and small projects.
There are many banks or banks, and the difference between a state bank, a private bank, and other banks is also many, and banks are divided into several types, and each type has its own unique style that distinguishes it from other banks. The types of banks are:
The central bank or the state
The central bank is a government or state financial institution that works to support the economy and money of a particular country, and then the banks of the states established in it.
The central bank is called the state bank or the bank of banks and this is because it is responsible for all the other banks within the country.
Thus, the Central Bank is one of the leading banks in the country’s banking system.
They are commercial banks that handle all financial deposits.
As well as deposits withdrawn in cash or check.
This type of bank has contributed to providing many types of financing, such as financing small and short-term projects.
The repayment period for the bank is not more than a year, and recently, commercial banks have given loans for more than a year.
Specialized banks are banks that work to finance projects and support the economy, whether these projects are “industrial, commercial or agricultural.” :
An industrial bank that offers loans on mortgages or certain guarantees.
It provides loans for all industrial activities by purchasing raw materials and products.
Ziraat Bank, which provides financing for agricultural projects.
By obtaining a wide variety of agricultural products produced from the soil.
A real estate bank that provides loans to support real estate, such as the purchase of buildings and land.
These are long-term loans, project management and real estate and commercial consultancy.
Banks owned by a person, group of persons, companies or institutions.
The owner may be ordinary or legal persons and they establish the bank.
He bears all legal and financial responsibilities.
They are banks jointly owned by the state and individuals or institutions.
They are also involved in its management, and the bulk of the control of these banks lies with the government.
Because it owns the largest share of the capital and directs the bank according to the state’s financial policy.
This type of bank depends on private funds such as deposits made by individuals.
This is the management of its business, and the most important function that investment banks provide is to provide long-term loans to projects whether large or small.
When was the first bank established?
There are many different types of banks and banks and the difference is big between state bank, private bank, investment bank and other banks.
Various studies show that the first banking transaction took place in 3500 BC.
The first bank or bank appeared in the civilization of Mesopotamia.
This civilization needed rules to control its activities and banks then witnessed a development.
While loans spread in the markets in the ancient Greek civilization.
It has become a common practice to conduct financial transactions and deposits by means of lending.
After that, the Romans took control of Greece and developed their banking ideas from the Greeks.
Because they were more experienced in farming rather than trading.
After all, the current form of banking dates back to the late Middle Ages.
When trade operations appeared in countries and cities, especially in Italian cities, the wealth of trade increased.
They put their money in jewelry and barter shops to protect them from theft.
In exchange they were given certificates of title, and over time barter transactions became secure and certificates of deposit and checks were developed.
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Is bank interest halal?
Secretary of the fatwa d. The Egyptian Dar Al Iftaa, which was approved by Muhammad Abd al-Sami, states that it is permissible to take some money to build a project or buy a property.
And taking some for consumption is permissible, not forbidden, and God knows best.
It is worth noting that the benefits of banks differ from one bank to another, for example, Nasser Social Bank, the interest rate ranges between 11.5% annually.
The Housing and Development Bank’s interest rate is 11.25% over the six-month return.
What are Islamic banks?
Islamic banks means the way the bank operates according to Islamic law because there is no interest in these banks because the interest of the loan is subject to the usury rule.
It is forbidden in Islam and is considered a major sin. The first Islamic bank was established in the United Arab Emirates and there are now nearly 600 Islamic banks all over the world.
The most famous Islamic banks currently are Faisal Islamic Bank and Dubai Islamic Bank, which have worked to provide banking services needed by Muslims without fear of falling into usury.
Transactions in banks are subject to the legal supervision of Islamic jurists and clerics, and HSBC is the safest bank for Islamic lending and transactions.
The best foreign banks in the market
The following are the most important foreign banks that have achieved positive rates, both in gaining customer confidence and in the country’s economic growth:
National Bank of Qatar
Established in 1978 with four segments, the bank operates by controlling 215 branches, 17,000 points of sale and 450 ATMs in all countries, serving nearly 970,000 customers.
Commercial International Bank CIB
It is a private sector bank, established in 1975, that provides many services, its headquarters is in Giza, and the bank has 174 branches and its net profit in 2016 amounted to 337.72 million dollars.
Watch here: What are the working hours of banks in Egypt today?
In the concluding part of the article, we will explain the difference between a government bank and a private bank and explain that although there is a slight difference, state banks are affiliated with the government while private banks are affiliated with private individuals or companies and institutions.
We also explained the types of banks and the best foreign banks, as well as the opinions of Dar Al Iftaa about the interests of banks and the importance of not controlling usury over Islamic banks.