Other Functions of Banks other than acceptance and safe keeping money.

[PICKFORD]

As opposed to a retail bank, which gives indistinguishable monetary items to people, a business bank loans advances, acknowledges stores, and offers fundamental monetary items, for example, investment accounts and authentications of store to organizations. A business bank brings in cash generally by loaning cash to clients and charging revenue on such credits.

Clients store cash in bank accounts, financial records, currency market records, and declarations of store to support the bank. On their bank stores, contributors get revenue. The premium paid to contributors, then again, is lower than the loan cost charged to borrowers. Engine vehicle advances, contracts, business credits, and individual advances are only a couple of the advances accessible from a business bank. Below are the functions of commercial banks other than deposit acceptance:

1. Expanding Credit Facility Amounts:
Since it represents the biggest level of yearly income, propelling credits is a basic job for banks. Banks ordinarily offer exorbitant premium short-and medium-term credits in view of an extent of money stores. Because of the prerequisite to keep resources fluid, they don't give long haul financing. Banks evaluate what is happening, business productivity, kind and size of the firm, and capacity to reimburse the advance without default prior to giving advances to clients.

2. Making Credit:
Banks don't give cash advances to their clients when they make advances to them. All things considered, the bank opens a store represent the borrower, from which the person in question can pull out monies. This empowers the borrower to pull out assets with a money order as required. The bank supports how much cash available for use by encouraging an interest store in the borrower's record without delivering more cash.

3. Agency Functions:
Commercial banks go about as specialists for their clients, gathering and paying checks, profits, premium warrants, and bills of trade for their benefit. They additionally pay their clients' protection charges, energy bills, lease, and different costs. Banks likewise exchange stocks, bonds, and debentures, as well as offering encouraging administrations to shoppers hoping to trade these items. Business banks work as legal administrators and agents of homes for their clients in property organization. For the office assignments done for the benefit of their clients, banks charge a little expense.

 

[Jasz]

Banks have many different functions and roles, based on the location of the bank and its relationship with a particular customer. One of the most common roles that banks take on is that of an intermediary. An intermediary is a third party, like a broker or agent, who facilitates transactions for clients. In this case, banks act as intermediaries for clients in a very broad sense.

In addition to acting as an intermediary, banks provide other services in order to facilitate transactions for their clients, such as information and financial services. Information services include the verification and rating of assets; financial services include advising on financial transactions, lending money, providing lines of credit and arranging payments between parties. These two groups of services are not mutually exclusive; it is common for a bank to both provide information and advice on financial transactions and lend money to facilitate those transactions.

 

[Kingsley]

Banks indeed has alot of other functions besides just the acceptance of deposit and the safe keeping of properties. Banks were actually designed primarily to accept deposit and attend to withdrawals. But their functions goes a bit beyond that because with out knowledge on the aids to trade we realise banking is one of the aids of trade. This is because banks makes it easy and facilities trade. They issue out loans o makes it easy for business start ups and they always provide financial advice to their customers. To make it easy to make payments and receive payments across countries. They also issues out travellers check to their customers. They serve as the bridge between the people and the central bank. They even make payments locally very easy.

 

[Sotherefore]

I know there are many purposes and reasons why people can used the Bank for but for me I do not really have interest to deal with banks other than to withdraw my money I intend to use for a very short time , because even saving of money in the bank to me is just a pure waste of time and resources whereas I could have invested that money in something maybe cryptocurrency or any other thing for me to raise more money to add up to my main capital.

Saving money in the bank over here will not really give you a reasonable profit that is why I do not even bother to save my money in the bank but I rather invest my money in the US dollars or any other country in which the economy is growing rapidly.

I know it is quite possible for people to get a loan with the bank but to me I do not have the interest to get a loan from anybody except grants probably from the government or any other grant giving organisation but for loan I do not have the interest because getting a loan to start up a business is not on my own principle