receive the branch of any commercial bank and write a report on various functions perform by bank
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Hey frnd
Functions of commercial banking
These two are the primary services of a commercial bank. Taking in deposits is a liability for a bank, so these come under the “Liabilities” division, while lending a loan is an asset and comes under the “Assets” division. Banks have several other products within these two broad headings of assets and liabilities.
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Commercial banks are the most important components of the whole banking system.
A commercial bank is a profit-based financial institution that grants loans, accepts deposits, and offers other financial services, such as overdraft facilities and electronic transfer of funds.
According to Culbertson,
“Commercial Banks are the institutions that make short make short term bans to business and in the process create money.”
In other words, commercial banks are financial institutions that accept demand deposits from the general public, transfer funds from the bank to another, and earn profit.
Commercial banks play a significant role in fulfilling the short-term and medium- term financial requirements of industries. They do not provide, long-term credit, so that liquidity of assets should be maintained. The funds of commercial banks belong to the general public and are withdrawn at a short notice; therefore, commercial banks prefers to provide credit for a short period of time backed by tangible and easily marketable securities. Commercial banks, while providing loans to businesses, consider various factors, such as nature and size of business, financial status and profitability of the business, and its ability to repay loans.