supermarketport.blogg.se - Bank note definition

Giving AdvancesĪ bank lends out money in loans to those who require it for different purposes. It also acts as a custodian of funds of its customers. It gives safety to the deposits of its customers. Acceptance of DepositĪ bank accepts money from people in deposits that are usually repayable on demand or after a fixed period expires. A banking company is a company that is in the business of banking. Individual/Firm/CompanyĪ bank may be a person, firm, or company. The bank is a financial institution that deals with other people’s money, i.e., the money given by depositors. The main characteristics/ features of a bank are discussed below:- 1. Banks may also provide financial services like wealth management, currency exchange, and safe deposit boxes.ġ1 characteristics/features of a bank are Characteristics / Features of a BankĪ bank is a financial institution licensed to receive deposits and make loans. To be a banker, the company’s main function must be the ‘business of banking.’įinally, we can say that a banker is an individual employed by a banking institution and participates in various financial transactions, which may or may not include investments.A banker acts as a depository, agent, and repository of financial advice.He deals with others’ money but with his faculties.A banker is essentially a man of wisdom.

A banker performs multifarious functions.Blake, “A banker is a private person who keeps a bank one who is engaged in the banking business.”įrom the above definition, we can find the following characteristics of a banker:. Hart states, “A banker or a bank is a person or a company/carrying on the business of receiving money, and collecting drafts, for customers.”Īccording to John Bouvier, “A banker is one engaged in the business of receiving other person money in deposit, to be returned on demand discounting other persons’ notes, and issuing his own for circulation.”Īccording to Richmond V. A banker is a person who is doing banking activities or business.ĭifferent Authors and Economists have given some structural and functional definitions of Banker from different angles:-ĭr. In a broad sense, a banker conducts the business of banking.

Who is a Banker? Definition of BankerĪ banker is an officer of a bank. or a building where these services are offered.

It is a unique financial institution that creates demand deposits that serve as a medium of exchange, and as a result, the banks manage the country’s payment system.įinally, we can say that bank is an organization where people and businesses can invest or borrow money, change it to foreign money, etc.

It is a commercial institution it aims at earning profit.

It also deals with credit it has the ability to create credit, i.e., the ability to expand its liabilities as a multiple of its reserves.

Feals with money it accepts deposits and advances loans.

Hock, “Bank is such an institution which creates money by money only.”įrom the above definitions, a bank means a financial institution that Samuelson, “Bank provides service to its clients and in turn receives perquisites in different forms.” Kent, “Bank is an institution which collects idle money temporarily from the public and lends to other people as per need.”

According to Cairn Cross, “Bank is an intermediary financial institution which deals in loans and advances.”.

Perry, “Bank is an establishment which deals in money, receiving it on deposit.”

According to Peter Rose, a “Bank is a financial intermediary accepting deposits and granting loans.”.

Sayers, “Banks are institutions whose debts are commonly accepted in final settlement of other people’s debts.”

Oxford Dictionary defines a bank as “an establishment for custody of money, which it pays out on customer’s order.”.

Nowadays, the banking sector acts as the backbone of modem business. In the olden days, European money lenders or money changers displayed (show) coins of different countries in big heaps (quantity) on benches or tables for lending or exchanging. The term bank is either derived from the old Italian word “ Banca” or the French word “ Banque,” both mean a Bench or money exchange table. The development of any country mainly depends upon the banking system. The history of the banking industry is long and vast, and Finance is the lifeblood of trade, commerce, and industry.

Deposit is the Blood of the Bank, and the bank is the blood of the country’s economy.