Banks are financial institutions that accept deposits and make loans. The first banks emerged in Europe in the 17th century. The Bank of England, established in 1694, was the first central bank. Central banks regulate banking systems and monetary policy within their countries. Commercial banks serve customers directly through products like savings and checking accounts. Over time, new bank types emerged to support specific industries or activities. Today banks play a vital role in economic and financial systems worldwide.

1. Submitted to :
Sir Imran

2. •Definition Of Bank:
Institution that deals in money and its substitutes and
provides other financial services. Banks accept
deposits and make loans and derive a profit from the
difference in the interest paid to lenders (depositors)
and charged to borrowers, respectively. They also
profit from fees charged for services.
The word “BANK” derived from an
Italian word ‘BANQUE’ which
means a ‘BENCH’. It has originated
from the German word ‘BANC’
which means a “joint stock firm.”
• Meaning Of the Word ‘BANK’:

3. •EVOLUTION OF BANK IN ENGLAND:
oThe Bank of England was formed in 1694 to financially
help King Charles III (1689_1702).
o Central bank of England was nationalized in1946. In
mid-twenties many great banks were formed in the U.K.
which were merged into four big banks.
1. Lloyd bank
2. Barclays bank
3. Midland bank
4. National bank

4. oThe First Bank of the United States, was
established by the U.S. Congress in 1791.
o The bank was revived in 1816 only for 20 years
•EVOLUTION OF BANK IN U.S.A:
oThe first bank in Indo-Pak subcontinent came into existence
in 1809.
oIts name was Bank of Bengal.
oIn 1935 Reserve bank of India was established as a Central
bank.
•Evolution Of Bank IN INDIA:

5. oThe banking sector was created with the setting up of the
Habib bank in 1947 which was shifted to Karachi from
Bombay.
o Muslim commercial bank in 1948 from Calcutta to
Chittagong.
o In July, 1974 all commercial banks were nationalized.
•EVOLUTION OF BANK IN PAKISTAN:

6. •Central Bank:
The central bank is the bank which regulates the
banking system in the country. In every country, there
is a principal bank which responsible for regulation and
guidance of a financial system in the country. Central
bank does not deal with general public. Pakistan’s
central bank is the
“STATE BANK OF PAKISTAN”.
Established on 1ST July,1948.

7. •Functions of Central Bank:
•The primary objective of the bank is to
achieve and maintain price stability.
• Determines the monetary policy and the
monetary policy instruments to achieve and
maintain price stability.
• Supports the growth and employment
policies of the government.

8. •Responsibilities of
Central Bank:
oConducting monetary policy.
o Supervising and regulating depository
institutions.
o Maintaining the stability of the financial system.
o Providing payment and other financial services
to the government, the public and foreign officials
institutions.

9. •Commercial Bank:
Commercial bank are ones that receive deposits and
advance loans and play an important role in the
creation of credit money. They help businessmen to
promote their businesses. They work for traders,
manufacturers, wholesalers,
retailers, exporter and importers.

10. •ROLE OF Commercial BANK IN THE
ECONOMIC DEVELOPMENT OF A COUNTRY:
•Banks promote capital formation
• Investment in new enterprises
• Promotion of trade and industry
• Development of agriculture
• Balanced development of different regions
• Influencing economy activity
• Implementation of monetary policy
• Monetization of the economy
• Export promotion cells.

11. •INDUSTRIAL Bank:
Industrial bank offer valuable
services for the development of
industries in a country. They offer
long-term loans, both in local or
foreign currencies, to the
industrialist.
•Agricultural Bank:
The agricultural bank plays a vital role in the
agriculture field. They provides loans to
farmers and landlords to enable them to buy
fertilizers, seeds, tractors etc. the loans are
offered against the mortgage of the land.

12. •Mortgage Bank:
•Exchange Bank:
Its deals in foreign exchange and is involved in foreign trade. It
provides foreign exchange to importers. It buys and sells foreign
exchange at open market rates which are generally different from
the rates determined by the central bank .
It is the bank that commands its capital through deposits and
dealing in shares and bonds. Mortgage banks lend for purchasing
and reclaiming land, and discharging old debts. They mortgage
50% of the land. The period of loan ranges between 15 and 30
years.

13. •SAVING BANK:
Saving bank is to encourage savings of the common man. These
small savings, if deposited with the bank, turn into a large
amount which channeled in the development of commerce and
trade. Savings bank offer interest or profit to the accountholders.
•CONSUMER BANK:
Consumer bank is a new addition to the existing types of banks.
Such banks are usually found only in advanced countries like U.S.A
and Germany. The main objective of this bank is to give loans to
consumer for purchase of the durables like cars, television, washing
machine, air conditions and etc.

14. •Bank account:
A bank account can be defined as a facility
provided to the accountholder to deposit his
money with the bank and withdraw it whenever
he needs it. He may use the account to borrow
and or settle his debts through cheques.

15. •Saving Account:
This account is very common in Pakistan.It
was introduce by the bank for those who
have low income and small savings. This
account enable small severs to save and
earn income on it.This account is also
opened with the post office in Pakistan.

16. •Profit And Loss Sharing
Saving Account (PLS):
PLS saving account was introduce in Pakistan
on july1,1985
The aim of this account is to mobilize saving
of the people who do not want to earn interest
but desire to be sharer in profit and loss:The
bank invest these savings in non-interest areas
of business.

17. Rules for PLS:
•Account can b opened with a sum of RS:100/-
•Withdrawal can only be made through cheques.
•Withdrwal is allowed 8 times in a month.
•Allowed withdrawl of rs:15000/-
•For large amount a 7 days notice is required.

18. •HOME SAVING ACCOUNT:
In this type of account, the bank supplies
saving box to the costumer,to enable him to
drop his small saving into it from time to
time.The box is taken to the bank
periodically where the amount is taken out
from the box and credited to the customer’s
account This account is basically introduce
to inculcate the habit of saving.

19. •CURRENT ACCOUNT:
In current account,the banker incurs an obligation
to honour all cheques drawn by the customer so
long as there is enough money to the credit of the
customer.The obligation may be extended by an
agreement to the amount of overdraft agreed
upon between the banker and the customer.
The bank do not usually pay any interest on these
deposits as they can be withdrawn without
notice.The bank here acts only as the custodian of
the money.

20. •Facilities For Current Account
Holder:
•The bank collects properly endorsed
cheques,bills etc.
•The bank may allow the facility of overdraft on
prior arrangements.
•Loans and advances may be sanctioned to the
credit worthy current account holders.
•Withdrawal can b made through cheques and
ATM cards provided by the bank.

21. •FIXED DEPOSIT ACCOUNT:
Fixed or Term deposit account is the major source of fund
of a commercial bank.As the name implies is deposit which
kept with is the bank for a fixed period specified in
advance.The rate of interest is higher than that of saving
deposits.The longer the duration for which the amount is
kept with the bank,the higher is the rate of interest.
The interest is paid to the depositer at the expiry of period
for which the deposit has been made.The bank does not
issue cheque book against fixed deposit.

22. •FOREIGN CURRENCY ACCOUNT:
THE STATE BANK of PAKISTAN has introduce a
number of reforms in the foreign exchange control in
the country.The main purpose of introducing the
various reforms is to strengthen the foreign exchange
reserves which hover around 13billiondollars and are
only sufficient to cover the import bills of the country
for few weeks only.The reason of opening this type of
account is to Boosting Remittances and Mobilizing
Foreign Exchange Resources.

23. •JOINT ACCOUNT:
A joint account is a special bank account which is a
opened in the name of two or more persons.For
drawing the signature of all the account holders
are required.But through an agreement they can
allow any 1 of them to draw the amount.On the
death of the either party, the bank allows the
survivor to draw any balance standing to credit of
the account.

24. •RESERVE ACCOUNT:
A valuation account that shows the estimated
or actual decline in value of an asset and is
always subtracted on a balance sheet from the
related asset account to show net value ( for
depreciation, bad debts, to reduce investments
to market value) and also called allowance
account, provision account, valuation account.

25. An account representing ownership in a
business as a proprietor's account and a
partner's account.
OR
Any corporation account classified as part of
net worth as a capital stock account and a
surplus account.
•CAPITAL ACCOUNT: