Question

Explain the role of commercial bank in working capital finance

Answer 1

commercial bank bank that offers services to general public

A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. Loans | Types: CC/OD, BG, LC, WC ... Cash credit or bank overdraft is the most useful and appropriate type of working capital financing extensively used by all small and big businesses. It is a facility offered by commercial banks whereby the borrower is sanctioned a particular amount which can be utilized for making his business payments.

Answer 2

Role of commercial bank in working capital Finance is -

• The total banking system of our country is highly dependent on the commercial banks which are used for the general public.

• The capital finance is majorly dependent on the transactions done by the public.

• And the public transactions are completed by these commercial banks.

In this way the commerical banks manipulate the capital finance.