Bank functions

 

The bank has a function which among others is to raise funds

To carry out its function as a fund collector, the bank has several sources which in general there are three sources, namely:

1. Funds originating from the bank itself in the form of capital deposits at the time of establishment.

2. Funds originating from the wider community are collected through banking businesses such as savings accounts, deposits and savings.

3. Funds sourced from Financial Institutions obtained from loan funds in the form of Liquidity Credit and Call Money (funds that can be withdrawn at any time by the borrowing bank) and meet the requirements. Maybe you have heard of several banks liquidated or frozen, one of the reasons is because many loans are problematic or stuck.

Also Read:

Definition of Savings

Definition of Giral Money

Definition of Deposits

Definition of Banks and Types

Definition of Current Account

Share to your friend? Choose one below: