# What is Bank and Banking?

Answer: Bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. Banking is the business of providing financial services to the private individuals, corporations, Government agencies and business and industries. # What are the functions of bank? Answer: A bank does various kind of banking activities. All the Banking activities are given below 1. Receiving deposits. 2. Lending money. 3. Creation of loan deposits. 4. Receiving and allowing interest. 5. Cash management and other services. 6. Agency services. 7. Safe deposits and other services. 8. Credit card services. 9. Online Banking. 10. Foreign trade financing. 11. Information and other services. 12. Collection of cheque through clearing house. 13. Capital formation. 14. Investment advisor. 15. Own investment. # What is the emergency of NGOs in Bangladesh? Answer: Necessity, as they say as the mother of invention. With the government, under the tutelage of the donors, and banking system under the weight of external factors, turning away from the poor, where else would the poor look for succor other than the NGOs? The rural poverty in Bangladesh provided an idea for breeding ground for the birth of a most elaborate NGO system in the world. Indeed Bangladesh has earned the distinction of being the birth place of microfinance institution. A multitude of MFIs we over 150 of them dot the country s skyline. They have stepped in though that vacuum to address thee need of the rural poor the so called bottom m, half leading among them are
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Grameen Bank and big NGOs like s BRAC ASA and Proshika. Typically and MFI from groups of village poor encourage the groups to make small weekly savings supplement these savings with MFIs own fund s and arranges disbursement through the groups to pursue one or to the income generating activities on the basis of recommendation of the group. The borrows are required to repay the loan in small instilment at short intervals usually in weedy basis. # Do you think the Bangladeshi bank able to serve appropriately without NGOs in the rural areas? If no, why? Answer: I think this is not possible without NGOs because there are a lot of reasons. All the reason are given below--1. Most of the bank work at city and town are they are not interested to open the branch at village. 2. There service cost is much more than NGOs 3. NGOs working hard then the other Bangladeshi bank. 4. NGOs work on small savings and investment basis but bank wonk on lager small and investment basis. 5. Banking activates are complicated than NGOs functional. For all the reason analysis I can say that, without NGOs It is not possible to the rural people. # What do you mean by commercial bank? Answer: Commercial banks are so named because they specialize in loans to commercial and industrial business. Commercial bank are may be owned by probate investors, called stocks holder / share holders or by companies called bank holding companies. They are some times owned by the governments by the 3rd world countries. In western world a vast majority of commercial bans are owned by the holding companies. A holding command is corporation that exists only to hold share in another company.
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Commercial banks are the oldest financial institution. They occupy an important position in the financial landscape of nearly every country. #Functions of commercial banking:
Commercial banking

A. General Banking function

B. Social welfare functions

C. Agential functions

A. General Banking function:

1. Receiving the deposit A. current account B. saving account C. Fixed account 2. creating loan 3. creating capital 4. creating investment 5. investment 6. controlling loans 7. Discounted
B. Social welfare functions:

1. Transfer of money or deposit 2. Issuing letter of Credit 3. Sanction the Economic solvency certificate. 4. Financing
C. Agential functions:

1. 2. 3. 4. 5.

Transfer of money collecting and payment to creditors sell of share and bond Payment of insurance premium Giving acceptances in bill.

# Income source of commercial bank:

1. 2. 3. 4. 5. 6. 7.

Interest from loan Investment Bill discounted Advanced payment to customers Underwriting Rent to locar Agent 1. 2. 3. 4. 5. 6. 7. 8. 9. Formation of Capital Earning profit creating habit of savings creating the utility of money sanction of loan investment Employment controlling loan Economic development

# Objective of commercial bank:

# Supervision: The international banking forum- the bank for international settlement have laid out elaborate ground rules to prevent banks from running aground. These prescriptions ate intended to address critical issues like capital adequacy, Supervision, corporate governance and other prudential regulations. # Principle of commercial banking: 1. 2. 3. 4. 5. 6. principle of liquidity principle of security principle of earning profit principle of saving principle of solvency principle of investment 7. Principle of expense contraction. 8. principle of development

9. principle of establishment of goodwill 10.principle of secrecy 11.principle of skill management 12.principle of service 13.principle of publicity # Employment of funds and treasury management:
Cash in hand

money at call and short notice Bills discounted Investments Advances to customers # Loans and Advances: Loans and credit constitute the banks bread and batter and the, profitable a names assets, the loans cannot be easily recalled nor these can be sold out to others especially in underdeveloped economies due to absence of factoring services. As the thumb rule, a commercial bank should generally lend only for short term commercial purpose. It is not wise to commit a substantial part of commercial banks resources of long term loans for capital cost of industrial enterprises which re the domains of specialized agencies like industrial bank (shilpa banks. BSRS) # Automatic teller machine (ATM): ATM enable bank customer to withdraw money from their checking or savings accounts by inserting an ATM card and private electronic code into an ATM. The ATM enables bank customers access to their money 24 hours a day and seven day s week wherever ATM are located. Bank offer the debit cards that directly withdraw fund from a customers account for amount of purchase, much like writing a checkups. # Credits card: Credits cards are introduced for use of credit-worthy customers.