Private banks belong to private finance. The existing forms of private finance are:

1. Mutual lending: that is, general private lending, which is private lending between private entities. It mainly occurs between close acquaintances, who have high mutual trust. That is a private bank.

2. Small loan company: It is a limited liability company or a joint-stock company that operates small loan business, but does not accept public deposits. It is mainly established by investment from natural persons, corporate legal persons and other organizations. Its loan methods are mainly credit loans and some mortgage loans, and the loan interest rates are higher than those of ordinary formal financial institutions.

3. Pawn: Pawn refers to a situation in which a person in need of funds uses his or her own property as a mortgage to obtain a certain amount of funds, and stipulates that the principal and interest will be used to redeem the original property within a certain period of time. financing behavior.

4. Loan intermediaries: Loan intermediaries have a good understanding of the surrounding lenders and have established a certain degree of credit. They facilitate transactions between borrowers and lenders through matchmaking and charge corresponding handling fees. In this kind of transaction, the intermediary's credit becomes particularly important.