CONCLUSION ON BANKING SECTOR (300 WORDS)
Answers
Explanation:
commercial bank of occupy dominant place in the money market . there as a matter of fact from the largest component in the banking structure of any country.
they are the oldest and largest and fastest growing financial instructions India . are the profits making instruction dealing in money and credit ..
commercial bank play a major role in the growth and development the country due to modern organisation and functioning , funds and wide network all over the country ..
are into a reservoir in to which flow the savings the idle surplus money of households from which loans are given on interest to businessman and others who need them for investment and productive uses ..
commercial Bank are very important source instructional credit as they are the major depostory of people's savings . they are very important devices for providing short term credit to trade and Commerce . commercial bank being repositories of deposits have played significant role in garnering savings of the people particularly after the nationalisation . they have made praiseworthy efforts in pulling the savings ..
hope this helps you...
Answer
Banking systems have been with us for as long as people have been using money. Banks and other financial institutions provide security for individuals, businesses and governments, alike. Let's recap what has been learned with this tutorial:
In general, what banks do is pretty easy to figure out. For the average person banks accept deposits, make loans, provide a safe place for money and valuables, and act as payment agents between merchants and banks.
Banks are quite important to the economy and are involved in such economic activities as issuing money, settling payments, credit intermediation, maturity transformation and money creation in the form of fractional reserve banking.
To make money, banks use deposits and whole sale deposits, share equity and fees and interest from debt, loans and consumer lending, such as credit cards and bank fees.
In addition to fees and loans, banks are also involved in various other types of lending and operations including, buy/hold securities, non-interest income, insurance and leasing and payment treasury services.
History has proven banks to be vulnerable to many risks, however, including credit, liquidity, market, operating, interesting rate and legal risks. Many global crises have been the result of such vulnerabilities and this has led to the strict regulation of state and national banks.
However, other financial institutions exist that are not restricted by such regulations. Such institutions include: savings and loans, credit unions, investment and merchant banks, shadow banks, Islamic banks and industrial banks.