What is Mixed Banking? Definition of Mixed Banking, Mixed Banking Meaning and Concept

Mixed banking is the type of banking that operates both in commercial or consumer banking as well as in wholesale or industrial banking. Also that which is owned by public and private capital.

Initially, banking has been divided into several types: retail or commercial banking, industrial or business banking, and particularly investment or corporate banking, dedicated to large companies and large-scale operations.

Until recently, banking was perfectly defined and dedicated to its previously defined sector. However, with the expansion and empowerment of banks, traditional retail banking began to operate with products dedicated to small and medium-sized companies and to finance operations of large companies. On the other hand, industrial or business banking was opening up towards the traditional consumer sector as a way to diversify its market and compensate for the loss of weight of the industrial sector in the economy as a whole.

Mixed banking as an entity whose capital is made up of state contributions and private capital.

In turn, the term mixed banking also refers to that bank whose capital is made up of public and private resources.

Public banking has always been an instrument of the states to regulate to a certain extent and operate with their criteria in the banking market, especially before the deregulation and opening of the 80s and 90s of the 20th century.

Over time, and as the liberalization of the sector has increased, public banks have been absorbed by part of traditional private banking, except in some cases in which only part of the capital has been sold, either with a majority or a majority. minority of the public sector, but where in any case it had scope for action and direction.

In this sense, mixed or semi-public banks have been the main supporters of financing lines for SMEs and entrepreneurs, opting for a greater ease in financing and a greater margin of return, thus showing off their initial principles.