What Is A Banking Enterprise ? Introduction, Definition Together With Features Of Bank

What is a Bank ? Introduction ↓

Finance is the life blood of trade, commerce together with industry. Now-a-days, banking sector acts equally the backbone of modern business. Development of whatever province mainly depends upon the banking system.

The term banking venture is either derived from quondam Italian discussion banca or from a French discussion banque both hateful a Bench or money telephone substitution table. In olden days, European money lenders or money changers used to display (show) coins of dissimilar countries inwards big heaps (quantity) on benches or tables for the purpose of lending or exchanging.

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A banking venture is a fiscal establishment which deals amongst deposits together with advances together with other related services. It receives money from those who desire to salve inwards the cast of deposits together with it lends money to those who postulate it.

Definition of a Bank ↓

Oxford Dictionary defines a banking venture equally "an establishment for custody of money, which it pays out on customer's order."

Characteristics / Features of a Bank ↓

1. Dealing inwards Money

Bank is a fiscal establishment which deals amongst other people's money i.e. money given past times depositors.

2. Individual / Firm / Company

A banking venture may locomote a person, theater or a company. Influenza A virus subtype H5N1 banking fellowship agency a fellowship which is inwards the concern of banking.

3. Acceptance of Deposit

A banking venture accepts money from the people inwards the cast of deposits which are unremarkably repayable on need or later on the kicking the bucket of a fixed period. It gives security to the deposits of its customers. It too acts equally a custodian of funds of its customers.

4. Giving Advances

A banking venture lends out money inwards the cast of loans to those who require it for dissimilar purposes.

5. Payment together with Withdrawal

A banking venture provides slowly payment together with withdrawal facility to its customers inwards the cast of cheques together with drafts, It too brings banking venture money inwards circulation. This money is inwards the cast of cheques, drafts, etc.

6. Agency together with Utility Services

A banking venture provides diverse banking facilities to its customers. They include full general utility services together with agency services.

7. Profit together with Service Orientation

A banking venture is a net turn a profit seeking establishment having service oriented approach.

8. Ever increasing Functions

Banking is an evolutionary concept. There is continuous expansion together with diversification equally regards the functions, services together with activities of a bank.

9. Connecting Link

A banking venture acts equally a connecting link betwixt borrowers together with lenders of money. Banks collect money from those who cause got surplus money together with hand the same to those who are inwards postulate of money.

10. Banking Business

A bank's principal action should locomote to produce concern of banking which should non locomote subsidiary to whatever other business.

11. Name Identity

A banking venture should ever add together the discussion "bank" to its mention to enable people to know that it is a banking venture together with that it is dealing inwards money.