Class X - Economics & Accounting Bank is an institution which deals with money and credit. In other words, bank is an institution accepting deposit of persons and institution and giving loans against security. It provides technical and administrative help to industries, trade and business. According to Crowther, "Bank collects money from those who have it to spare or who are saving it out of their incomes, and it lends this money to those who require it. "
According to Prof. Sayers, a bank is "an institution
whose debts are widely accepted in settlement of other people's debts to each
other."
The kinds of banks are discussed below:
a) Commercial Bank :
Generally, bank means commercial bank. The
bank which performs ordinary banking business and generally providing loan to
businessmen are called commercial bank. It accepts deposit from general people
and other organization and encourages commercial bank and industrial sectors by
providing short term and long term loans. The examples of commercial banks are
Nepal Bank Limited, Nepal Industrial and Commercial Bank, Everest Bank,
Rastriya Banijaya Bank, Himalayan Bank etc.
b) Central Bank :
Central bank is a bank of nation. It is
also called as bank of the banks. It works as the bank of the government on the
one hand and on the other hand it issues the money, establishes and controls
other bank. It's main objective is to maintain monetary stability and help the
development of the country.
c) Industrial Bank :
The bank which is established with the
objective of developing the commerce and industry in the country is called
industrial development bank. This bank provides loans and other essential
technical services for the development and expansion of industries in the
country. It helps to sell shares of the industries and provide necessary
information to them. Nepal Industrial Development Corporation is one of the
industrial banks of Nepal.
d) Agricultural Bank:
The bank which is established to develop
agriculture is called agricultural bank. This bank provides short term loans
and long terms loans to farmers. Farmers need short terms loans for management
of farming tools and long terms loans for buying land. So, that agricultural
bank is established to provide these facilities to farmers.
e) Exchange Bank :
The bank which is established to exchange
foreign currency is known as exchange bank. Exchange bank also provides people
with loan, buy and sell bills of exchange and transfer funds.
f) Saving Bank :
Saving bank is established in the country with the objectives of collecting the money scattered among the classes of people having the low income. This bank provides the savers a certain amount as interest for their saving and encourage the people having low income.
g) Rural Development Bank :
The bank established to privede easy financial facilities for rural development is called rural development bank. Especially developing countries like Nepal, majority of people live in rural areas or in village. Those who live in the village face the problems of money to run their business or to run any development work. So, in order to provide facilities of short term and long term loans, some banks are established which is called as rural development.
Saving bank is established in the country with the objectives of collecting the money scattered among the classes of people having the low income. This bank provides the savers a certain amount as interest for their saving and encourage the people having low income.
g) Rural Development Bank :
The bank established to privede easy financial facilities for rural development is called rural development bank. Especially developing countries like Nepal, majority of people live in rural areas or in village. Those who live in the village face the problems of money to run their business or to run any development work. So, in order to provide facilities of short term and long term loans, some banks are established which is called as rural development.
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