WebA sound and effective banking system is the backbone of an economy. The economy of a country can function smoothly and without many hassles if the banking system backing Web30/05/ · Essay on Bank: Banks are financial institutions that provide a loan or save customer’s money. The term ‘Bank’ is derived from the word ‘Banc’ or ‘Banque,’ which Web12/01/ · First, divorcedfrom the banks, the Fed would find it harder to forestall and deal withfinancial crises. Second, monetary policy would suffer because the Fed wouldhave
≡Essays on Banking. Free Examples of Research Paper Topics, Titles GradesFixer
After reading this article you will learn about:- 1. Origin and Banking essays of Bank 2, banking essays. Meaning and Definition of Bank 3. Classification 4. Functions 5. Advantages or Importance. Banks in past used to be known as seths, shroffs, goldsmiths, etc. Banks are indispensable in every walk of life, banking essays. Banks are the nerve centre banking essays trade, commerce and business of an economy. Banking plays a very important banking essays in the economic development of all the nations of the world, banking essays. In fact, banking essays, banking is the life-blood of commerce.
Banking essays bank as understood in the present day world in simple language is an institution which deals in money. Broadly speaking, banks draw surplus money from the persons who are not using it at the time and lend to those who are in a position to use it for productive purposes. According to Prof. According to Dr. From the above definitions of bank we come to the conclusion that bank is an institution which deals in cash and credit. Commercial banks are the most important type of these institutions. Besides the commercial banks there are central bank, industrial banks, co-operative banks, etc. These different institutions conduct their operations in a different manner.
The banking institutions can be classified into following types on the basis of their functions:. These are the most common and important type of banking institution. A commercial bank is a monetary institution which serves the interest of its depositors by providing with security vaults for the surplus resources and, on the other hand, makes profits by investing its resources in the banking essays measures by extending loans. Commercial banks may be owned by the government or they may be run in the private sector. For instance, 20 major commercial banks are nationalised in India. The other private sector banks are organised on the lines of a Joint Stock Company.
Commercial banks are therefore dealers in loanable funds of the community. These banks have come up for the promotion of new industrial concerns. Industrial banks or investment banks provide medium and long-term loans and also supply fixed capital to the banking essays concerns by subscribing to the shares and debentures of the industrial enterprises. Indian Finance Corporation and Investment Corporation of India are the examples of industrial banks in India. Exchange banks are those banks which deal in foreign exchange, banking essays, that is, to convert the rupee into foreign currencies and vice versa, banking essays. Dealings in foreign exchange are also handled by the commercial banks. In our country, dealings in foreign exchange are conducted by the foreign exchange banks as well as Indian commercial banks.
Co-operative banks have been set up to meet the requirements of very poor farmers and small scale industrial concerns. Members of these banks can be individual or the societies. These banks can get capital resources from their banking essays, from public deposits and also get loans from the State Co-operative Banking essays. Their area of operation extends over a state. These banks banking essays short and medium- term loans from the Reserve Bank of India. The co-operative banks play a very useful role in agriculture credit. These banks provide long-term credit to farmers and agriculturists against the security of their land. The loan is extended for the purchase of tools, implements, equipments and for financing permanent improvements with a view to increase yield banking essays land.
These banks raise their resources in the form of shares and by issuing of long-term debentures. At present there in no country in the world, which has not set up a Central Banking essays of its own. A Central Bank is so-called because it occupies a central position in the monetary and banking system of a country and is the highest financial authority. It is the apex bank and the statutory institution in the money market of a country. In India, it is named Reserve Bank of India. The main function of this bank is to regulate and supervise the whole banking system. It is a lender of last resort and custodian of foreign balances of the country.
These institutions have been set up to promote the savings of the middle income group of the society. In our country, postal saving banks arc banking essays good example of such banks. These banks collect the small savings of the public and operate savings accounts. Savings accounts are also operated by banking essays Indian commercial banks. These banks have been called by different nams in different parts of the country, such as, seths, banking essays, shroffs, mahajans, banking essays, sahukars, chettis, banking essays. The indigenous bankers generally lend money and finance the internal trade of our country.
The rate of interest is comparatively higher. Rural banks, meant for the development of rural economies, banking essays, have been established by the Central Government at the request of commercial banks who have sponsored such proposal and are called the Sponsor Banks. Each rural bank will have an authorised capital of Rs. These banks grant loan to small farmers, small entrepreneurs and agricultural labourers. To receive money from the public is an important function of a bank, banking essays. There are many people who have surplus funds but cannot use their funds profitably or ideally. They deposit these banking essays funds with the bank. Fixed deposits are known as Time Deposits.
Under fixed deposits money is deposited for a fixed period and cannot be withdrawn before the expiry of the time as decided by the customer. These deposits fetch comparatively higher rate of interest. These are mainly concerned with businessmen who have to visit the bank every now and then for the purposes of money transactions. Current deposits can be withdrawn any time by any amount. Generally no interest is paid on such deposits. The main objective of saving deposits is to encourage saving among the persons. The rate of interest on such deposits is 5 percent, banking essays. Some banks have placed restrictions on the number of withdrawals but others permit free withdrawal policy. This is one of the important functions of a bank, banking essays.
It is also the chief source of profit to most of the banks. Banks accept deposits from those who have surplus money and grant loans and advances to those who need them, banking essays. Banks charge comparatively higher rate of interest on the amount advanced as a loan, banking essays. Banks may advance cash-credits. This system of granting cash-credits is very popular in Scotland. According to H. On the other hand, cash- credits are based on the promissory notes of the borrowers backed by the collaterals like shares, stocks, bonds or goods.
It is a temporary help being extended by the banks. Secured overdrafts are granted against several types of securities. The interest is charged on daily overdrawn balances. Banks also advance loans to businessmen, consumers, banking essays, farmers- etc. In case of a loan, a specified amount is sanctioned by the bank to the customer. The borrower is required to pay interest on the entire amount of loan from the date of sanction. The bank may also lend by discounting bill of exchange. Discounting a bill of exchange amount to the advancing of a loan against a promise to pay in future.
This is the most popular method of lending by banking essays commercial banks as the loans are self-liquidating. Apart from lending and investing activities, the banks perform a number of banking essays services for their customers. In doing so, banks act as agents to their customers. ii The banks also collect and pay the cheques, bills, promissory notes, dividend warrants, banking essays, subscriptions, rents, insurance premium and other periodical receipts and payments of their clients, banking essays. iii Banks also sell and purchase shares, stock, debentures and bonds etc. on behalf of their customers. Banks are the nerve centre of trade, commerce and business in a country. Banking is the life-blood of modern commerce.
There are a large number of banks which are working in all banking essays of economic systems in the world. Banks are beneficial for all, banking essays. Banks cultivate the habit of savings in the public. Savings in the bank on the one hand are safe and on the other hand earn interest for its depositors are prompted to save and deposit in their bank accounts. This is the main advantage of a bank. The money with the bank remains in safe custody.
How to write the Perfect Essay for the World Bank Group YPP
, time: 3:56Banking Essay Example | Happyessays
WebEssay On Investment Banking Banker, however although the benefits of the job are spectacular so are the drawbacks. Investment Banking is different from Commercial WebBank Essay 10 Lines ( - Words) 1) Banks are the place where people keep their money. 2) Works related to money like loans, transactions, etc are done in banks. 3) In Web12/01/ · First, divorcedfrom the banks, the Fed would find it harder to forestall and deal withfinancial crises. Second, monetary policy would suffer because the Fed wouldhave
No comments:
Post a Comment