Business Studies, asked by Anonymous, 5 months ago

Why banks are called debtors as well as creditor?

Answers

Answered by f4Faizan

Answer:

A bank owes money to its depositors that is why it is called debtor. On the other hand, a bank grants loan also and all those who have taken loan owe money to banks. That is why a bank is also called creditor. A bank is a debtor for its depositors and creditor for its loan holders.

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