Description
This is a PPT about Financial Services with respect to Commercial Banks.
Service
? Can be felt, can be enjoyed, appreciated but can not be
handled or stored. ? Characteristics
? Can not be stored
? Issues related to quality
? Training needs, inelastic to demand ? Low starting capital, easy to start. ? Poaching.
Characteristics: Financial Services
? In majority of the cases; large capital base
? Subject to government regulations ? Honesty, integrity. Must guard reputation. ? Often dependent upon Economic swings. ? Training needs
Banks:Important Characteristics
? Facilitators in moving money from where it is to where
it is needed. ? Providers of linkage between savings and investments. ? Creators of money (Credit)
Role of Commercial banks
? Facilitate commerce and trade ? Assist society in balanced development
Primary Functions
? Acceptance of deposits from public
? Current Account ? Savings Account ? Fixed Deposits
? Lending
? OD and Cash Credit facility ? Direct Loans/Term loans ? Bill Discounting
? Creation of credit ? Transferring money and other related activities.
Secondary Functions
? Transfer of Funds
? Cheque clearance ? Bank guarantees, LCs etc. ? Safe custody of valuables ? Consulting ? Market intelligence ? Factoring, underwriting etc. ? Foreign Exchange dealing
doc_443047829.ppt
This is a PPT about Financial Services with respect to Commercial Banks.
Service
? Can be felt, can be enjoyed, appreciated but can not be
handled or stored. ? Characteristics
? Can not be stored
? Issues related to quality
? Training needs, inelastic to demand ? Low starting capital, easy to start. ? Poaching.
Characteristics: Financial Services
? In majority of the cases; large capital base
? Subject to government regulations ? Honesty, integrity. Must guard reputation. ? Often dependent upon Economic swings. ? Training needs
Banks:Important Characteristics
? Facilitators in moving money from where it is to where
it is needed. ? Providers of linkage between savings and investments. ? Creators of money (Credit)
Role of Commercial banks
? Facilitate commerce and trade ? Assist society in balanced development
Primary Functions
? Acceptance of deposits from public
? Current Account ? Savings Account ? Fixed Deposits
? Lending
? OD and Cash Credit facility ? Direct Loans/Term loans ? Bill Discounting
? Creation of credit ? Transferring money and other related activities.
Secondary Functions
? Transfer of Funds
? Cheque clearance ? Bank guarantees, LCs etc. ? Safe custody of valuables ? Consulting ? Market intelligence ? Factoring, underwriting etc. ? Foreign Exchange dealing
doc_443047829.ppt