A financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment
Commercial banks
Mobilise public savings
Help in the process of capital formation
Provide finance and credit to trade and industries
Provide funds for all types of production activities and help in accelerating capital formation
Banking Company
One which transacts the business of banking which means the accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft or otherwise
Essential functions of a financial institution to become a commercial bank
Acceptance of demand deposits that have cheque facilities
Lending
Commercial banks perform a number of functions which can be divided into three main groups: Primary Functions, Agency Functions, General Utility Functions
