Principles of BankingBanks are the financial institutions having license to accept deposits and forward loan, investment and other services- Banking : life-blood of commerce and business in modern era.
Types of Banks (Ownership)•Private Banks•Public Banks•Foreign Banks
Banks and Financial Institution-Categorized•Commercial Banks – A•Agriculture Development•Industrial Development•Housing Development•Energy Development •Development Banks – B•Financial Companies- C•Micro financing/Cooperatives - D
Functions of the BanksBasic functions of a bank :•Borrowing and•Lending constitute two basic functions of a bank.Banks functions have expanded further:PrimarySecondary
Regulatory FrameworkAll banks and the financial institutions are operating under certain Regulatory framework as well guiding principlesBAFI act provides regulatory framework and to some extent guiding norms.
Principlesof commercial banksLiquidity – Paying depositors on demand timely without loss.