Functions of Banks

1. Business of Banking

2. 1) Executive Functions
2) TheTeller Functions
3) The Book keeping Functions

3.  A banker must of necessity be faced with policy-
making with establishing harmonious relations with
customers in order to get business, with gathering
facts and figures about the depositors and debtors,
with recruiting personnel to do the minor operations,
and with similar duties involving the caliber of an
executive.
 The banker must be a man of creative managerial
ability. He should possess a charming personality. He
should be prudent and patient and must possess an
above average intelligence if possible.
Be the Bank, not the Banker

4.  After the bankers shall have built up a clientele, he must
then act as teller in manifold ways.
 He accepts deposits, he changes checks for cash, he
changes big bills with smaller denominations, he releases
the checks or cash representing loans, he received payment
for loans. And such other teller functions.
 To be an efficient teller, the person must be patient,
understanding, accurate and careful, if not cautious.
 For a mistake in paying or receiving money may make or
unmake a teller.

5.  To keep a faithful record of the events and
accounts passing through his hands, the
banker must record the figures and
sometimes the facts.This requires
bookkeeping knowledge.
 He may also be called upon to summarize
and interpret the facts and figures. This
latter position requires accounting ability.

6.  A potentially efficient banker must possess a character above
suspicion and integrity of the highest order.
 He should be patient, understanding, cordial, and respectful.
 He should be well versed in banking principles and practices.
 He should have a good command in the medium of
communication.
 He should have a working knowledge of law, economics,
accounting, management, public relations, and business
psychology.

7. -A banker must be a
“jack of all trades; master of all.”-

8. Business of Banking

9.  In allowing the flow of credit funds, the banks become
significant in the economy because they can create
money out of loan proceeds.
 If a bank abuses this power, it will create havoc in the
company.
 On the other hand, if the bank exercise wise judgment in
this particular aspect, it will contribute tremendously to
the economic well being along the commercial,
industrial, and even agricultural endeavors.
 The banks, therefore, may or may not contribute to the
development of the country.

10.  By its functions of giving expert advice to
businessmen, the bank may contribute to the
success (or failure) of the country as a whole.
 Since bank exercise prudence in giving such
advice, it usually turns out that they
contribute to wise decisions and proper
incentives in business and trade.

11.  The Banks came out of the need to facilitate trade
transactions, particularly credit transactions.
 A bank also facilitates the dealings between debtors and
creditors because it acts as an intermediary in the flow of
Credit Funds.
 It allows others the use of otherwise idle funds of the
community in productive activities.
 For the person depositing money are usually those who
have no immediate need for the funds and the bank, in
turn lend these funds to those who are momentarily in
need of them.

12.  Without banks, Foreign trade would stagnate or perhaps
not flow smoothly.
 The major link between international buyers and sellers
are the banks.They influence and allow the continuous
and successful flow of foreign trade.
 This is more evident when the banks doing business in the
international network are world renowned.
 International trade necessitates the letter of credit and
acceptance which banks handle with the greatest care due
to their wealth of experience in dealing on credit.