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Other types of banking - Pg. 104

5 Other types of banking The increased liberalisation of financial systems has led to banking being glo- balised, with foreign banks becoming increasingly important in domestic systems; we thus look at international banking. Then, alongside banks set up as shareholder-owned companies we have other types of organisations conduct- ing banking-type activities. For example there are a number of mutually-owned (owned by their customers) entities that invite deposits, make loans and partici- pate in the payment system. These include building societies, savings and loans and cooperative banks. When people or businesses obtain an asset through hire purchase or leasing the obligations under the agreement are in many ways similar to a bank loan. These are certainly considered alternative ways of borrowing money and so can be included under banking. Indeed most of the large finance houses that operate in