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# 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 tocommercial 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:

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. FinancingC. Agential functions:

1. Transfer of money

2. collecting and payment to creditors

3. sell of share and bond

4. Payment of insurance premium

5. Giving acceptances in bill.

# Income source of commercial bank:

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Commercial banking

C. Agential functionsB. Social welfare functionsA. General Banking

function

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1. Interest from loan

2. Investment

3. Bill discounted

4. Advanced payment to customers

5. Underwriting6. Rent to locar

7. Agent

# Objective of commercial bank:

1. Formation of Capital

2. Earning profit

3. creating habit of savings

4. creating the utility of money5. sanction of loan

6. investment

7. Employment

8. controlling loan

9. Economic development

# 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. principle of liquidity

2. principle of security

3. principle of earning profit

4. principle of saving

5. principle of solvency

6. principle of investment

7. Principle of expense contraction.

8. principle of development

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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.

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