Commercial Banking System

Commercial Banking System- Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities and then lending out this money in order to earn a profit. A commercial bank is where most people do their banking. Commercial banks make money by producing and receiving interest from loans such as mortgages, business loans, auto loans, and personal loans. Customer deposits present banks with the capital to make these loans.

The market for financial services and products is a global dynamic. The growth of international banking has however been restricted to Euro currency and off-shore banking centers because of protectionist financial policies, restrictions on banking practices, and unpromising financial environment.

Commercial banks have traditionally been located in buildings where customers come to use teller window services and automated teller machines (ATMs) to do their routine banking. With the rise in technology, most banks now allow their customers to do most of the same services online that they could do in person including transfers, deposits, and bill payments. 

the module “Commercial Banking System” includes the following topics:

• Nature of Commercial Banks
• Characteristics of Commercial Banks
• Functions of Commercial Banks
• Intermediation
• Payments and Settlement System
• Financial Services
• Trend in Banking

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