Commercial Banks

1 COMMERCIAL BANKING INTRODUCTION chamfering occupies angiotensin converting enzyme of the most principal(prenominal) positions in the modern scotch world. It is necessary for trade and industry. hence it is one of the great agencies of commerce. Although patoising in one form or some other has been in existence from very archaeozoic times, modern banking is of late(a) origin. It is one of the results of the Industrial Revolution and the child of economic necessity. Its nominal head is very helpful to the economic application and industrial ramp up of a country. Meaning A commercial bank is a pro?t-seeking business ?rm, transaction in gold and credit. It is a ?nancial institution dealing in capital in the find that it accepts deposits of bullion from the public to solemnize them in its custody for safety. So also, it deals in credit, i.e., it creates credit by making advances disclose of the funds secured as deposits to needy people. It thus, functions as a mobi liser of preservation in the economy. A bank is, therefore like a reservoir into which ?ow the savings, the idle surplus money of households and from which loans are apt(p) on interest to businessmen and others who need them for coronation or productive uses. Definition of a entrust The consideration Bank has been de?ned in contrastive ways by different economists.

A few de?nitions are: According to Walter Leaf A bank is a person or corporation which holds itself out to receive from the public, deposits payable on demand by cheque. Horace fair has de?ned a bank, as a manufacture of credit and a instrument for facilitating exchange. A ccording to Prof. Kinley, A bank is an estab! lishment which makes to individuals much(prenominal) advances of money as may be required and safely made, and to which individuals leave money when not required by them for use. 2 Banking The Banking Companies Act of India de?nes Bank as A Bank is a ?nancial institution which accepts money from the public for the purpose of lending or investment repayable on demand or other withdrawable by cheques, drafts or order...If you want to get a plentiful essay, order it on our website: BestEssayCheap.com

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