2. History of Bank
 Definition of Bank
 Classification of Bank


3. There are various point of views :
 Originated from German word “Banc”
which means” joint stock firm”
 Derived from Italian word “Banque”
which means “bench”

4. 
1.
2.
3.
Origin of Modern banking system is the
result of performance of 3 categories of
People
Merchants
Money lenders
Money changers /gold smiths

5. Bank is an institution which deals with money
 According to crowther:
“A bank collects money from those who have it
spare and who are saving it and advance it to
those who requires it.”
Objectives:
a) To provide banking services
b) To gain profit (main purpose)


6. Mainly there are 6 types of Banks
1. Central Bank
2. Commercial Bank
3. Exchange Bank
4. Industrial bank
5. Agriculture bank
6. Mortgage bank

7. 
Central bank is an institution which
is responsible for safeguarding the
financial stability of a country.

8. Monopoly of note issue:
 Banker of government/state:
- Collects taxes on behalf of government
- Advisor in financial matter
- Sales a purchases government property
 Lender of the last resort:
 Controller of money market and credit


9. Commercial banks provide loans to
finance domestic investments.
 People save their spare money on
commercial banks.


10. Why do people Save
their money in Banks?

11. 
1.
2.
3.
Basically there are three reasons :
Immunity of money
To obtain profit
To prevent improper expenditure

12. Other type of banks:
3)
4)
5)
6)
Exchange bank : Deals with foreign
currencies
Industrial bank : gives long term credits to
industrialists
Agriculture bank : gives long term and short
credits to farmer
Mortgage bank : gives loans to public and
construction companies

13. The conclusion that can be drawn is that………

14. Questions