Premium Essay

Banking

In: Business and Management

Submitted By FAMWL
Words 2187
Pages 9
What do you mean by Bank?

There is no unanimous opinion as to when and how the word “Bank” was derived. But it is assumed that this word derived from the ancient Latin words “Banco”, “Bangk”, “Bancus” and “Banque”. Meaning of these words is long bench. Once a class of people used to sit in the bench particularly in Lombardy street of Italy for taking deposit and lending money as a banking business.

Definition of Bank:

➢ Different authors have defined the “Bank” in different ways with a common principle to accept deposit from the public and lending the same to the borrowers.

➢ Some important definitions are:

➢ “A bank is an establishment which trades in money, and establishment for deposit custody and issue of money, and also for granting loan and discounting bills and facilitating transmission of remittances from one place top another”

…... from Imperial Dictionary.

➢ “An organization through which funds in the form of money or claim to money are assembled and transferred from those individuals and firms having a surplus of economic goods(as represented by such funds) to other individuals & firm whose needs for funds exceed their existing supply”..... from Rollin G. Thomas.

➢ “Banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. ……………. from The Bank Company Act, 1991.

Banker:

➢ Section-3 of NI Act. states that Banker means “ a person transacting the business of accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any post office savings Bank”.

➢ According to Bill of exchange Act of 1882 Banker includes a body of persons...

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