| dc.description | Generally by the word “Bank” we can easily understand that the financial institution deals
with money. But there are different types of banks like: Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, and Co-operative Banks etc. But when
we use the term “Bank” without any prefix, or qualification, it refers to the ‘Commercial
banks’. Commercial banks are the primary contributors to the economy of a country. So it
can be said that Commercial bank is a profit-making institution that holds the deposits of
individuals and business in checking and savings accounts and then uses these funds to make
loans. For these people and the government is very much dependent on these banks as the
financial intermediary. As, banks are profit-earning concern; they collect deposit at the
lowest possible cost and provide loans and advances at higher cost. The differences between
two are the profit for the bank. | en_US |
