Bank Definition And Introduction To Banking

INTRODUCTION TO BANKING: Word Bank is used in a Comprehensive manner for those financial institutions and Organization which deal in money and honor the cheques issued upon, they receive deposits and advancing loans. These deposits and loans base on interest. Remember that loan interest rate always higher than the deposit interest rate. That difference is the bank profit. In the modern world, banks become so necessary that if it is excluded from the economic system the whole business economics world collapse.

RECOGNIZED DEFINITIONS OF BANK

According to the Hilton Commission

“Bank refers to an individual firm or company, who receives deposits in the form of money and pays it back through cheque draft or order and uses the Word “Bank” for its identity”.

According to Dr. Herbert Hart

“Banker refers to the person who, with reference to his business functions, receives and pays it through cheque to for whom or from his accounts the money was received”

According to Prof. Kinley “Bank is an organized house which borrows money from the people for the sake of providing a loan or other services of monetary nature to businessmen or need a person”

According to Prof. Hartley Withers

“A manufacturer of credit and a machine for facilitating exchange”

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