Definition bank: Bank is a financial institution that collects society’s surplus cash and gives a part of that cash as loan to investors of craning profit.
So, bank is an intermediary institution that makes relationship between the owner of surplus savings and the investor of deficit capital. In this process, banks earn profit by receiving interest from the borrowers who want to take short-term and or log-term and or long-term loans and making relatively lower interest payment to take short-term providing their funds for use by the bank. By honoring the demand of time, banks are issuing various types of credit products. In this way, the risk associated with the usage of paper currency is properly managed.It is related with financial matter. definition bank
Some widely accepted definition bank's are given below:
a) Bank is an institution that is registered by central bank and mainly performs the following activities.
- Receives current deposit and give the withdrawal facilities to clients through cheque or debit card
- Receives term deposit and pay interest on it
- Discounting notes, approving loans, and invest in government and other credit instruments
- Collect cheque, draft and note, etc
- Issue draft and cashier’s cheque
- Notification of depositors cheque
- Act as a trustee in accordance with gov. permission. definition bank
(Dictonary of Banking and finance.)
b) A commercial bank is a trader of substitute currencies such as currency, cheque and bill of exchange. ( New Encyclopedia Britainnia. )
So, bank means a business institution that receives surplus funds of individuals, trading, or non-trading institutions, government or private institutions as deposit and supply non-trading institution, government or non-government institution who has deficit fund and demand for money and to facilities this process. So, I think you may got definition bank.
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