Commercial Banks

1 COMMERCIAL BANKING INTRODUCTION chamfering occupies angiotensin converting enzyme of the most pregnant positions in the modern economical world. It is necessary for trade and industry. and so it is one of the great agencies of commerce. Although patoising in one form or some other has been in existence from very advance(prenominal) 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 natural action and industrial ramp up of a country. Meaning A commercial bank is a pro?t-seeking business ?rm, relations in gold and credit. It is a ?nancial institution dealing in capital in the find that it accepts deposits of bills from the public to clutches them in its custody for safety. So also, it deals in credit, i.e., it creates credit by making advances unwrap of the funds secured as deposits to needy people. It thus, functions as a mobilise r of preservation in the economy. A bank is, hence 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 investiture or productive uses. Definition of a entrust The shape Bank has been de?ned in varied 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 exsanguinous has de?ned a bank, as a manufacture of credit and a instrument for facilitatin g exchange. According to Prof. Kinley, A ban! k is an establishment 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 differently withdrawable by cheques, drafts or order...If you want to get a lavish essay, order it on our website: BestEssayCheap.com

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