Sunday, 24 November 2019

Unit 9: Commercial Banking Services


                             Unit 9: Commercial Banking Services     

The importance of Commercial banks and their contribution are discussed.

An attempt is made is to provide the effect of RBI banking regulations, demand supply theory of money, interest and profitability of banks are explained.

The risk management practices observed by banks are discussed.

The management of primary and secondary reserves, loan policy formulation and issues involved are discussed.

There is also discussion on the financial institutions, which offer a variety of specialized to traditional services to the business and act as mediators and agents of transfer of funds to create wealth to the society at some charge for the service, which would be their source of revenue.

They have the obligation of creating a qualitative Financial System and should cooperate with the regulatory bodies engaged with various measures to discipline the economic system.

Credit or loan: Credit or loan refers to sum of money along with interest payable.

Finance: Finance is monetary resources comprising debt and ownership funds of the state, company or person.

Financial Institutions: Financial Institutions are business organizations that act as mobilizes and depositories of savings and as purveyors of credit or finance.

They also provide various financial services to the society.

Financial System: Financial System is concerned about money, credit and finance.

Money: Money refers to the current medium of exchange or means of payment.

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