Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

9 basic principles that commercial banks follow- Nelson

11,774 views

Published on

Nelson

Published in: Economy & Finance
  • Profit Maximiser is a brand new approach is on a far bigger scale to bonus bagging. Making you more money, from more markets, more often. What i lover about Mike is that he takes the time to actually show you with real examples and over the shoulder tuition. ♣♣♣ http://t.cn/A6hPRLE0
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating for everyone is here: ♥♥♥ http://bit.ly/2F90ZZC ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating direct: ♥♥♥ http://bit.ly/2F90ZZC ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Ripley's Believe It Or Not Investigated Him After His 5th Win...(unreal story inside) ★★★ http://t.cn/Airf5UFH
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Earn $90/day Working Online. You won't get rich, but it is going to make you some money! ★★★ http://ishbv.com/ezpayjobs/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

9 basic principles that commercial banks follow- Nelson

  1. 1. 1. Principle of Liquidity Principle of liquidity is very important for commercial bank. Liquidity refers to the ability of an asset to convert into cash without loss within short time. Paying the deposited money on demand of' customers is called liquidity in sense of banking.
  2. 2. 2. Principle of Solvency Solvency means the financial capability or sufficiency in capital. To stray in these competitive market commercial banks must have sufficient capital. If the funds are not sufficient the bank cannot run his business. The main source of fund of the commercial bank is the deposited money by the depositors’ through different type of account. Depositors keep cash in the bank especially for safety. So commercial bank must ensure the safety against deposited fund.
  3. 3. 3. Principle of Profitability The main objective of commercial bank is to earn profit. For earning profit commercial bank have to make investment by providing short term loan, before providing loan commercial bank have to compensate certain amount of money as liquidity.
  4. 4. 4. Principle of Loan and Investment The main source of profit of bank is granting loans to any individual or organization. Investment is profitable and sound source of income. Commercial banks invest in business and investment sector.
  5. 5. 5. Principle of Savings Commercial banks collect fund by creating savings facilities. Commercial banks try to collect savings from society surplus. Commercial bank makes investment from this savings to generate profit. So, more savings, more investment and more profit.
  6. 6. 6. Principle of Services Commercial bank ensures best services to their customers. The success of a bank depends on the services provided by bank. Customer chooses those banks that provide improved services.
  7. 7. 7. Principle of Secrecy Customers want to keep secret about their valuable assets and money. So banks must have to keep secret about their customers account. If commercial bank does not maintain secrecy the customer will be dissatisfied.
  8. 8. 8. Principle of Efficiency Commercial bank should operate their business efficiently. So that they can be succeed at the objective. In this competitive market there is no alternative way without efficiency in management. So commercial bank must train their employees to increase the efficiency in management.
  9. 9. 9. Principle of Location Commercial banks must have to locate their branches in the commercial area where many customers are available. The location must be safe for the customers and easy communication system must exist.
  10. 10. 1. Hot water will turn into ice faster than cold water. 2. The Mona Lisa has no eyebrows. 3. The sentence, “The quick brown fox jumps over the lazy dog” uses every letter in the English language. 4. The strongest muscle in the body is the tongue. 5. Ants never sleep! 6. “I Am” is the shortest complete sentence in the English language. 7. Coca-Cola was originally green. 8. The most common name in the world is Mohammed. 9. When the moon is directly overhead, you will weigh slightly less.

×