This document discusses commercial banks and their role in the economy. It defines commercial banks and lists their primary functions as accepting deposits, advancing loans, creating credit, and promoting check usage. Secondary functions include agency services and discounting bills of exchange. The document also outlines how commercial banks promote capital formation, investment, trade, agriculture, regional development, and implement monetary policy. This helps develop the economy and increase production.

2. Assignment Submitted to
Sir Faiz Rasool (Ms)
1:-HassanRaza
2:-UsmanNazir
3:-UsmanNawaz

3. Origin of word
Banke, Banc or Banck
Definition:
Bank: “A financial institution which receives deposits and advances
loans.”
Commercial Bank: “A bank that offers services to the general public
and to companies.”
Typesof commercialBanks:
1. Saving Banks
2. Deposit Banks
3. Industrial Banks
4. Exchange Banks
5. Miscellaneous Banks
6. Agricultural Banks

4. 1. Bank Al-Habib
2. Bank Alfalah
3. Standard Charted Bank
4. Askari Bank
5. Faysal Bank
6. HBL
7. MCB
8. NIB
9. Soneri Bank
10.Summit Bank
11.United Bank Limited
12.Samba Bank
13.Silk Bank

5. 1. Primary function
2. Secondary function
Primary Functions
1. Acceptance of deposits
i. current deposits
ii. Savings deposits
iii. Fixed deposits
2. Advancing loans
overdraft facilities
Cash credit

6. discounting bills of exchange
consumer credit
3. Creationof credit
4. Promote the use of cheques
5. Financinginternaland foreign trade
6. Remittanceof funds

7. Secondary function
1. Agency Services
2. Discounting Bills of Exchange:
Agency Services:
“Commercial banks also perform certain agency functions for their
customers. For these services, banks charge some commission from
their clients.
Discounting Bills of Exchange:
“It refers to a facility in which holder of a bill of exchange can get
the bill discounted with bank before the maturity. After deducting
the commission, bank pays the balance to the holder. On maturity,
bank gets its payment from the party which had accepted the bill.”

8. 1. Meezan Bank
2. Al Baraka Bank
3. Bank Islamic Pakistan ltd.
4. Burj Bank
5. Dubai Islamic Bank

9.  Historyof Islamicbanking in Pakistan
• The Islamic summit of Lahore ,Pakistan held in
1974 recommended the creation of Islamic banks
and Islamic development bank
• On 14 Ramadan 1420 , the bench of the
supreme court of Pakistan gave its landmark
decision banning in all its forms. The court also
specified a step by step approach to rid the
country of the evil of interest.

10.  After 55 years its creation in the name of Islam ,
Pakistan became the first Muslim country of
officially declare modern bank interest as
“ ar-riba ”
declared haram by Quran

11. Role of CommercialBanks in the Economy
 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

12. d
1. Banks promote capitalformation
Commercial banks accept deposits from individuals
and businesses, these deposits are then made
available to the businesses which make use of
them for productive purposes in the country
2. Investment in new enterprises
Businessmen normally hesitate to invest their
money in risky enterprises. The commercial banks
generally provide short and medium term loans to
entrepreneurs to invest in new enterprises and
adopt new methods of production

13. 3. Promotionof trade andindustry
The use of bank draft, check, bill of exchange, credit
cards and letters of credit etc has revolutionized both
national and international trade.
4. Development of agriculture
The banks in developing countries are now provided
credit rural areas. The arrangement of credit to
agriculture sector has greatly helped in increasing the
agriculture productivity and income of the farmers..

14. 5. Balanceddevelopment of differentregions
 The commercial banks play an important role in
achieving balanced development in different
regions of the country.
 They help in transferring surplus capital from
developed regions to the less developed regions.
6. Influencingeconomicactivity
If the commercial banks are able to increase the
amount of money in circulation through credit
creation or by lowering the rate of interest, it
directly affects economic development.

15. 7. Implementation of Monetary policy
It helps in bringing price stability and promotes
economic growth with in the shortest possible
period of time.
8. Monetization of the economy
 The commercial banks by opening branches
in the rural and backward areas are reducing
the exchange of goods through barter.
 The use of money has greatly increased the
volume of production of goods.

16. 9. Export promotion cells
 In order to increase the exports of the country,
the commercial banks have established export
promotion cells.
 They provide information about general trade
and economic conditions both inside and outside
the country to its customers.