Objectives of bank
************************
Bank is such person, organization or place that concerns to the trade of money & loan. It gains profit by disbursing loan at higher interest rate than the rate of interest given to mass on their deposit. But profit earning is not its only objective . It is to gain various objectives out of earning profit. The objectives of modern bank are discussed below with two areas :
a) Business objectives.
b) Social objectives.
a) Business objectives :
----------------------------
1. Making profits.
2. Providing services.
3. Currency issue.
4. Creation of transaction media.
5. Receiving deposit.
6. Making loan.
7. Ensuring safety.
8. Investment.
b) Social objective :
---------------------------
1. Creating savings.
2. Capital formation.
3. Industrialization.
4. Employment.
5. Developing living standard.
6. Economic development.
7. Supplying information.
8. Advising.
9, Representation.
Functions of Bank
*************************
Bank is the financial institution which earn profit through accepting deposit, extending credit, issuing notes & cheque, receiving and paying interest. Bank performs many activities out of achieving organizational goal to develop socioeconomics of a country. The activities of bank may be divided into 3 stages.
A. General functions.
B. Economic "
C. Others "
A. General functions :
-------------------------
1. Receiving deposits.
2. Advancing of loan.
3. Receiving & paying interest.
4. Issuing notes & currencies.
5. Creation of medium of exchange.
6. Money transfer.
7. Safe custody.
8. Creating deposits of credit.
9. Credit control.
10. Controlling money market.
11. Discounting.
12. Investment.
B. Economic functions :
------------------------------
1. Creating savings.
2. Capital formation.
3. Representation.
4. Advising.
5. Industrial development.
6. Agricultural development.
7. Establishing relationship.
8. Issuing letter of credit.
9. Employment.
C. Other functions :
-------------------------
1. Social development.
2. Cultural development.
3. Assist to the govt..
4. Manpower development.
5. Regional development.
At last it is said that, bank can increase the area of its functions receiving & following the principal of globalization and raising. The new level is being added to its functions with modernizing the banking system.
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