Definition of Commercial Bank by Different Authors:
According to Prof. Roger, “The bank which deals with money and money’s worth with a view to earning profit is known as a commercial bank.”
In the words of (Daiff, Kirat Daiff) “Commercial banks are a financial institution based on trade funds, craft their basic as they act as an intermediary between capital and investments and with the investments seek access to private capital”.
New Encyclopedia Britannica “A commercial banker is a dealer in money in substitutes for money, such as cheques or bill of exchange.”
The Macmillan Family Encyclopedia says “Commercial banks usually just called banks, can be defined as institutions that provide checking accounts to the public and have the substantial proportion of their assets invested in loans and general business firms.”
According to Prof. Gilbert “A commercial bank is a dealer in capital or more property a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another and the difference between the terms at which he borrows and those at which he lends from the source of his profit.”
Professor Hart says, “ A banker is one who, in the ordinary course of business, honors cheques drawn upon him by persons for and for whom he receives money on the current account.”
According to P.A. Samuelson, “ Bank provides service to its clients and in turn receives perquisites in different forms.”
According to W. Hock“ Bank is such an institution which creates money by money only.”
The functions of Commercial Banks are given below:
- Receiving Deposits
- Accommodation of loans and advances
- Creation of Loan Deposits
- Creation of medium of exchange
- Contribution in foreign trade
- Formation of capital
- Creation of Investment Environment
- Help in trade and commerce
- Safe custody of valuables
- Remittance of Money
- Help in Foreign Exchange business
- Collect utility service bills
- Purchase and sale of prize bonds and shares etc
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