Report on commercial Banks and othhers.pptx

banks are financial institutions that provide a broad range of financial services to individuals, businesses, and governments. Their primary functions include accepting deposits, offering checking and savings accounts, providing loans, and other financial services. This report explores the roles, functions, types, and impacts of commercial banks in the economy.

1. Introduction Commercial banks are financial institutions that provide a broad range of financial services to individuals, businesses, and governments. Their primary functions include accepting deposits, offering checking and savings accounts, providing loans, and other financial services. This report explores the roles, functions, types, and impacts of commercial banks in the economy.

2. Functions of Commercial Banks   1. **Accepting Deposits:** - **Demand Deposits:** Also known as checking accounts, these allow customers to withdraw their funds on demand. - **Time Deposits:** Savings accounts or fixed deposits where funds can be withdrawn after a specified period.   2. **Providing Loans and Advances:** - **Short-Term Loans:** Typically for working capital needs. - **Long-Term Loans:** For capital investments like purchasing machinery, real estate, etc. - **Advances:** Credit offered against securities like goods, fixed deposits, or shares.

3. Impact on the Economy   1. **Economic Growth:** - By providing capital to businesses and consumers, commercial banks fuel economic growth and development.   2. **Monetary Policy Transmission:** - Act as intermediaries in the implementation of central bank policies aimed at controlling inflation and stabilizing the currency.   3. **Employment Generation:** - Create direct employment through their operations and indirect employment by financing businesses that generate jobs.