The following points highlight the five main principles of lending followed by banks. The principles are: 1. Liquidity 2. Safety 3. Diversity 4. Stability 5. Profitability. Principle # 1. Liquidity: Liquidity is an important principle of bank lending. Bank lend for short periods only because they lend public money which can be withdrawn at any […]
5 Main Principles of Lending Followed by Banks
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Process of Credit Creation by Banks
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In this article we will discuss about the process of credit creation by banks. The ability of banks to create credit depends on the fact that banks need only a small percentage of cash to deposits. If banks kept 100 per cent cash against deposits, there would be no credit creation. Modern banks do not […]
Financial Services Rendered by Public Sector Banks of India
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The following points highlight the top thirteen financial services rendered by public sector banks of India. The services are:- 1. Merchant Banking 2. Leasing 3. Venture Capital 4. Mutual Funds 5. Factoring 6. Housing 7. New Technology in Banking Mechanisation 8. Customer Service 9. Banking Ombudsman 10. Credit Cards 11. Installation of ATMs 12. Hire-Purchase […]