FUNCTIONS OF COMMERCIAL BANK
Meaning of commercial banks
A banking company is one which transacts the business of bankingwhich means the accepting for the purpose of lending allinvestments, of deposits of money form the public, repayuable ondemand or otherwise and withdrawable by cheque, draft orotherwise.There are two essential functions that a financial institution mustperform to become a bank. These area)Accepting of the chequable deposit form the publicb)LendingMain features:
It accepts deposits from the public. These deposits can bewithdrawn by cheque and are repayable on demand.
A commercial bank uses the deposited money for lendingand for investment in securities.3.It is a commercial institution , whose aim is to earn profit
It is a unique financial institution, that creates demanddeposits which serves as the medium of exchange.5.Money created by commercial banks is known as depositmoney.
Functions of commercial Banks
Various functions of commercial banks can be divided into threemain groups;i.Primary functionsii.Agency functions
General utility functions