represent the loan activities of bank with the help of figure
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The loan activities of bank
Explanation:
The total loan activities of banks can be classified into two comprehensive divisions: Funded loan where bank shares with capital.
Banks' loan and accommodations portfolio compose the following:
- Demand Loan.
- Term Loan.
- Overdrafts.
- Cash Credit.
- Bills purchased and discounted.
- They keep small balances of the securities with them as a mortgage.
- These securities are used to offer mortgages to borrowers.
- Banks impose a higher interest rate on mortgages than what they appear on deposits.
Learn more: Banking system
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