With reference to various types of Banking, what is “Mixed Banking”?

Answer: [A] when banks undertake the activities of commercial and investment banking together

Mixed Banking is the system in which banks undertake activities of commercial and investment banking together.

  • These banks give short-term and long-term loans to industrial concerns.
  • The banks appoint experts which give valuable advice on various financial issues and also help gauge the financial health of companies.
  • Industries don’t have to run to different places for differential financial needs.
  • They thus promote rapid industrialization.
  • They may however pose a grave threat to liquidity of a bank and lead to bad debts.

This question is a part of GKToday's Integrated IAS General Studies Module