Ppt on bank lending rate

Ukrainian Academy of Banking of the National Bank of Ukraine Banking Department Banking Lecture 2 Bank lending Anna Vladimirovna Buriak, Ph.D., Senior.

. Return or Profitability: Return or profitability is another important principle. The funds of the bank should be invested to earn highest return. However, a bank should not sacrifice either safety or liquidity to earn a high rate of interest. 2. Rules of Bank lending Principles of Sound Lending: 4. Diversification: ‘One should not put all his eggs in one basket’ is an/


K Mahajan MODE OF CREDIT DELIVERY/METHODS OF LENDING contd. LEGAL ASPECT OF LENDING On legal aspect, loans and advances may be categorised  Secured by collateral  Unsecured  Covered by bank guarantees Samir K Mahajan  Unsecured loans Unsecured loans don’t have asset for collateral. These loans may be more difficult to get and have higher interest rates. Unsecured loans rely solely on your credit/


meet their own liquidity needs. They will offer funds at competitive rates pushing rates down. Excess Demand: If i IBR < i*, banks will tend to hold on to reserves rather than lend them at unattractive rates. Banks facing shortfalls must offer better rates Policy Instrument: Target for interbank lending rate US Fed: Fed Funds Rate; Bank of Japan: Uncollateralized Call Money Rate Interbank Rate Link Tools: Open Market Operations Open Market Purchase: Central/

BEYOND GROUP LENDING P.V. Viswanath. Learning Goals  What are some problems with group lending?  What can a model of individual loans with costly debt.

the likelihood of the band having sufficient funds to lend to the entrepreneur in the second period.  So since R is decreasing in , we see that the interest rate that the bank can charge and still have the borrower repay is even/R must be less than  y to elicit repayment, the bank cannot break even! So what can it do? Progressive Lending  One answer is progressive lending.  If successive loans are larger, then clearly, interest rates can be higher because servicing costs are lower for larger loans/

Copyright 2014 by Diane Scott Docking1 The Commercial Banking Industry – History & Structure.

banks to lend to startups and engage in loans to micro businesses Use of innovative or flexible lending practices to assist low or moderate income individuals 24Copyright 2014 by Diane Scott Docking Community Reinvestment Act of 1977 Depository Institution Deregulation and Monetary Control Act (DIDMCA) 1980 First of Deregulation Acts Phased Out Interest Rate/end 2009 (now permanent) Allows the US Treasury to Add Capital to Banks to Enhance Lending  www.treas.gov/press/releases/hp871.htm www.treas.gov/press//

1 The BIS Regulatory Framework and Icelandic Banking Sector: Issues and Dilemmas Seminar at the Central Bank of Iceland February 18, 2002 Gudmundur Magnusson.

growth rage, as proxy for the overall macroeconomic stance and the demand side of the bank lending; –BLEND - Annual rate of change in bank lending; –BDEP - Bank deposits as share of GDP; –GRSAV – Gross saving rate, annually, as supply side factor of the bank lending; –DISC – Discount Rate, as proxy for the supply side of the bank lending; –SUBL – Subordinated Loans; –TTRADE - Terms of trade, as proxy of the macroeconomic fluctuations; –DSHOCK/

Employee Compliance Orientation Revised 1/2005

Regulation H Regulation H provides guidance on a variety of matters relating to state-chartered member banks, from real estate lending standards to standards for safety and soundness. Regulation I Regulation I implements the provisions of/. It dealt with interlocking relationships between securities dealers and banks. Basic Regulatory Introduction Various Laws & Regulations (cont) Regulation S Regulation S establishes the rates and conditions for reimbursement of reasonably necessary costs directly incurred/

1 The related literature on foreign banks The proponents of foreign bank entry argue that foreign banks enhance competition in domestic banking markets,

the stability and effectiveness of monetary policy in the region. 20 The empirical model: the bank lending channel model where the dependent variable, Y i,j,t, represents the growth rate of loans (in real term) /the change in loan rates of subsidiary bank i in country j in year t, mp j,t is the monetary policy shock of country j in year t/

Lending Policies and Procedures: Managing Credit Risk

© 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Regulation of Lending (continued) 16-9 Regulation of Lending (continued) Uniform Financial Institutions Rating System Each banking firm is assigned a numerical rating based on the quality of its asset portfolio The federal examiner may assign one of these ratings: 1 = strong performance 2 = satisfactory performance 3 = fair performance 4 = marginal performance 5 = unsatisfactory/

TSINGHUA PBCSF-Global Finance Forum INTEREST RATE DETERMINATION IN CHINA: PAST, PRESENT, AND FUTURE Dong He Honglin Wang* Xiangrong Yu (Hong Kong Monetary.

in other financial markets 1. Interest Rates for Central Bank Operations  Lending rates of the lender of last resort –Relending rate –Rediscount rateLending rate for the SLF  Deposit rates for –Required reserves –Excess reserves  Interest rates of open market operations –Central bank Repo rates –Central bank bill issuing rates –Interest rates of the SLO (new) 5 2. Interest Rates of Banking Products  Regulated deposit rates of different tenors –Banks of different sizes have different pricing strategies/

Commercial and Industrial Lending Outline –The role of asymmetric information in lending –The competitive environment –The Board of Directors written loan.

agreed written terms). Customers request loans. Loan brokers (help arrange loans by approaching banks and other lenders with prospective loan deals with firms). Overdrafts (that occur when a customer writes a check on uncollected funds or there are insufficient funds). Refinancing of loans (due to lower loan rates). Principal lending activities Loans and leases for temporary assets versus permanent assets: –Line of credit/

Ajay Sagar Asian Development Bank March 2005 Local Currency Financing Initiative.

is that this new funding approach will attract fresh capital to emerging countries as risks associated with short term lending in the nature of refinancing, interest rate, volatility, maturity mismatch are removed.) Development Impact (cont’d) Retention of FDI through participation of foreign banks. Strengthened banking sector. Improved financial intermediation and reduced probability of default. Market based intervention gives a strong demonstrational effect Wider/

National Development Banks in comparative perspective

by the central bank, which serves as the benchmark for the credit system, rules higher than the TJLP (Taxa de Juros de Longo Prazo or Long Term Interest Rate) that governs BNDES’ operations. Since the government borrows at the SELIC rate and lends to the BNDES at the / owned by the government and built on the assets and facilities of the Industrial Bank, the KDB came to account by the end of 1955 for over 40 per cent of total bank lending. At one point, it accounted for 70 per cent of the equipment loans/

Money and the Banking System & Monetary Policy

shift the D curve D For given Fed policy E For given Y and P Quantity of Bank Reserves 44 Implementing Monetary Policy Market for bank reserves Interest rate in Fig. 1 is the federal funds rate Interest rate that banks pay/receive when they borrow reserves from one another Banks lend or borrow from one another to maintain a desired level of reserves D (S) for reserves/

Mortgage Financing for the Self Employed The Banks won’t approve me for a mortgage because I don’t declare enough income.

good credit and had filed an up to date tax return. The minimum income to qualify is no longer an issue. The rates/payments quoted were based on the assumption that the applicant had good credit and had filed an up to date tax return./ employed myself I have been forced to endure many of these lending limitations by the banks in the past. Being self employed myself I have been forced to endure many of these lending limitations by the banks in the past. I know which Financial Institutions will approve your/

Evaluating Consumer Loans

markets where they collect deposits FIRREA of 1989 raised the profile of the CRA by: Mandating public disclosure of bank lending policies and regulatory ratings of bank compliance Regulators must also take lending performance into account when evaluating a banks request to charter a new bank, acquire a bank, open a branch, or merge with another institution Consumer Credit Regulations Bankruptcy Reform Individuals who cannot repay their debts/

1 Does expansion into non-interest activities affect bank risk and lending conditions (interest rate spreads)? Presentation for Product diversification.

and fee activities set a lower interest margin and/or charge a lower lending rate. Hypothesis 2 : Banks more engaged in non interest activities and particularly in commission and fee activities /banking industry: Risk and loan pricing 2. Lending rate and non traditional activities 17 Product diversification in the European banking industry: Risk and loan pricing 2. Lending rate and non traditional activities 18 Product diversification in the European banking industry: Risk and loan pricing 2. Lending rate/

Agenda Overview of J.P. Morgan Private Bank Investment Management

Client Service Team Manages day-to-day administrative services 5 Agenda Overview of J.P. Morgan Private Bank Investment Management Banking and Lending Credit Trust and Estate Appendix We are organized around serving and meeting your needs Strategy Team Solutions Team/All securities mentioned below are potentially subject to significant mark to market volatility based on movements in either the interest rate or credit markets at any time. Note: All pricing and yields are subject to change at any time based /

Charts FS 1/06. Chart 1 Banks’ Tier 1 capital ratio and pre-tax profit as a percentage of average total assets 1). Annual figures. 1998 – 2005 Source:

and 2004 Source: Norges Bank The significance of Norges Bank’s key rate and competitive conditions for banks’ interest rates Chart 1 Bankslending rates, the sight deposit rate and 3-month interbank rate (NIBOR). Per cent. 91 Q1– 06 Q1 1) Quarterly average Source: Norges Bank Deposit rate (all deposits) Sight deposit rate 1) Lending rate (all loans) NIBOR 3-month rate (effective) 1) Chart 2 Changes in the sight deposit rate and bankslending rates. Percentage points. Quarterly/

2.5, 2.6 Monetary and Supply-side Policies Unit Overview Interest Rates Interest rate determination and the role of a central bank The Role of Monetary.

increased, the money supply will decrease and interest rates will rise. Buying or selling government bonds on the open market (open market operations, or OMO): Government bonds (or securities) are held by every major commercial bank in the world.  In addition to lending money to private borrowers (households and firms) banks lend money to governments through purchasing their bonds.  Bonds held by households and commercial/

Chapter 15 Tools of Monetary Policy. Demand for Reserves  Quantity Demanded for Excess Reserves ( ) provide banks with insurance against big withdrawals.

. Q i ff idid SRSR This (should) return the federal funds market to normal mode. Monetary Policy Tools of the European Central Bank  Open market operations  Main refinancing operations ­Weekly reverse transactions  Longer-term refinancing operations  Lending to banks  Marginal lending facility/marginal lending rate  Deposit facility  Reserve Requirements  2% of the total amount of checking deposits and other short-term deposits  Pays interest on those/

CONSUMER LENDING IN SWEDEN Analysis July 14, 2003 Notice: This Executive Briefing Report presentation is compiled from the World Wide Web and other sources.

the last two years. But it compares favorably with GDP growth rates of Germany and the EU-15 countries. Figures for 2003 are forecast . 7 II. LENDING ENVIRONMENT  According to Riksbank, fie types of lenders extend credit to the general public, with banks and mortgage institutions accounting for 87% of loans. Type of lenderLoans to general public (SEK bn) Banks1,345 Mortgage institutions1/

Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market Giovanni Dell’Ariccia Deniz Igan Luc Laeven The views expressed in this.

and subprime loans Subprime lenders identified using list by Dept. of Housing and Development (HUD) Robustness using interest rate data after 2004 Descriptive statistics Descriptive statistics Measuring Lending Standards Did banks become less choosy during the boom? Two measures of lending standards at MSA level: 1. Denial rate (DR) = Loans denied / Applications 2. Loan-to-income ratio (LIR) Preference for DR as more robust to/

Chart 1 Banks pre-tax operating profit as a percentage of ATA 1) 1) Excluding foreign branches 2) Annualised figures for 2003 based on first three quarters.

, non-financial enterprises and households Households Source: Norges Bank Non-financial enterprises Chart 3.3 Banks deposit margin, lending margin and total interest margin 1). Per cent Total interest margin Lending margin Deposit margin 1) Interest margin is defined as the average of lending rates (excluding non-accrual loans) minus the average of deposit rates. 3-month money market rate (NIBOR) is used to split the interest margin/

Money & Banking Dr. Katie Sauer Metropolitan State College of Denver Presented at Junior Achievement’s Elementary School Personal.

, the quantity of money in the economy falls - economy slows down A lower discount rate: - means that it will be less costly for banks to borrow from the Fed (should they need to) - so banks take this as a signal to lend out more (okay to be more risky) - when banks lend out more, the quantity of money in the economy rises - economy speeds up 3/

Financial Fragility Financial Stability Property Market Bank lending * Stress testing 30% for in property prices.

excessive supply. Watch closely for speculative bubble! Section4 Impact of monetary policy on property prices (SVAR)  Monetary policy movement Changes in repurchase rate Affect property price by altering bank lending and macro economy An increase in policy rate  Cause in short term interest rate to rise.  In turn increase the cost of loans.  Reduce demand for credit by both developer and consumers. *Consequently  Decreases house/

Professor Yamin Ahmad, Money and Banking – ECON 354 ECON 354 Money and Banking Financial Crises and the subprime Meltdown. 9 Lecture 8 Financial Crises.

Crises in Emerging Market Economies Stage one: Initiation of Financial Crisis  Path one: mismanagement of financial liberalization/globalization: Weak supervision and lack of expertise leads to a lending boom. Domestic banks borrow from foreign banks. Fixed exchange rates give a sense of lower risk. Banks play a more important role in emerging market economies, since securities markets are not well developed yet. 9/4/201555Money/

Section 1: Global financial environment. Chart 1.1 Global growth revisions Sources: IMF World Economic Outlook and Bank calculations.

, British Bankers’ Association, Council of Mortgage Lenders, De Montfort University and Bank calculations. (a)June 2012 Report. (b)Spread between average quoted rates on £10,000 personal loans and Bank Rate. (c)The corporate lending spread is a weighted average of SME lending rates over Bank Rate; CRE lending rates over Libor; and as a proxy for the rate at which banks lend to large, non-CRE corporates, UK investment-grade corporate bond spreads/

Charts Financial stability 2/06. Summary Chart 1 Banks’ Tier 1 capital ratio and pre-tax profit as a percentage of average total assets. 1) 1998 – 2005.

Norway, Finland and Sweden. About 50 of the largest banks in Denmark Chart 3.6 Banks’ 1) mortgage loans 2) by lending margin 3). Per cent Lending margin in percentage points Source: Norges Bank 1) All banks in Norway 2) Credit lines secured on dwellings are not included 3) Lending margin is defined as lending rate on stock of loans at end of quarter minus 3-month money market/

Towards a New Paradigm for Monetary Economics Joseph Stiglitz Reserve Bank of Australia September 1, 2005.

Key Differences Between New Paradigm and Old Focus on lending rate Equilibrium lending rate may not equate demand and supply of funds (may be credit rationing) Need to solve simultaneously for deposit rate - interest rate spread (in IS curve, investment depends on lending rate, savings depends on deposit rate) Supply of funds depends not just on monetary stance, but on: –Bank capital –Firm capital (affects probability of default on loans/

Central banks in chaotic times Implications of the financial crisis for central bank procedures and our understanding of monetary theory.

demand for excess reserves explodes as the banks lose confidence in each other: the fed funds rate rises Reserves Target rate Lending rate Deposit rate Demand for reserves S Fed funds rate The demand for excess reserves keeps exploding: the Fed stops neutralizing its lending facilities: fed funds rate drops Reserves Target rate Lending rate Deposit rate Demand for reserves S Fed funds rate S’ Timeline at the Fed III On 6 october 2008/

EVALUATING CONSUMER LOANS Chapter 11 Bank Management 5th edition. Timothy W. Koch and S. Scott MacDonald Bank Management, 5th edition. Timothy W. Koch.

) Most indirect loan arrangements provide for dealer reserves that reduce the risk in indirect lending. The reserves are derived from the differential between the normal, or contract loan rate and the bank rate, and help protect the bank against customer defaults and refunds. Role of dealer reserves in indirect lending: Automobile paper Recent risk and return characteristics of consumer loans The attraction is two-fold: 1/

Monetary Policy Chapter 13 2 OMO: What can go wrong? Credit easier to get Fed increases banking system reserves Fed buys bonds from the public or banks.

s DecreaseIncrease Decrease Increase in Discount Rate: Fed loans more expensive, banks borrow less from Fed Decrease: Banks hold instead of lending excess reserves Increase Decrease: Banks beef up resesrves instead of lending DecreaseM s DecreaseIncrease Decrease in Discount Rate: Fed loans cheaper, banks borrow more from the fed Increase: Banks lend instead of holding excess reserves Decrease Increase: Banks hold less excess reserves increase lending Increase M s IncreaseDecrease Increase in/

CENTRAL BANKING AND MONETARY POLICY Section 4. MONETARY POLICY FRAMEWORK Intermediate Target/ Nominal Anchor Economic Indicator to Guide Expected Value.

in excess of that required to meet their own liquidity needs. They will offer funds at competitive rates pushing rates down. Excess Demand: If i IBR < i*, banks will tend to hold on to reserves rather than lend them at unattractive rates. Banks facing shortfalls must offer better rates CRITERION FOR OPERATING TARGETS 1.Controllable 2.Observable 3.Linked to Goals Operating Targets are set by central/

Copyright © 2004 by Thomson Southwestern All rights reserved. 13-1 Asset Management for Depository Institutions: Commercial, Consumer, and Mortgage Lending.

& maintenance procedures & responsibilities Guidelines for management of loan collateral Policies and procedures for setting rates and repayment terms Statement of quality standards Description of banks principal trade area Procedures for detecting and working out problem loans Copyright © 2004 by Thomson Southwestern All rights reserved. 13-8 Regulations on Lending Purposes To protect consumers To minimize possibility of bailout with insurance To maintain stability/

Revise Lecture 20. Loans and Advances Lending money is one of the two major activities of any bank. The bank acts as an intermediary between the people.

loan proposal that the bank receives. Furthermore, for most of the loan proposals, whichever industry they may belong to, the modus operandi remain the same, analyzing, selecting, sanctioning and monitoring. Loans and Advances Lending Policies Hence the top management needs to set the standards. Standards relating to the exposure limits for individual / company/ industry, credit quality of the borrowers, lending rate, risk level, etc/

Copyright © 2000 by Harcourt, Inc. All rights reserved. 21-1 Chapter 21 Asset Management: Commercial, Consumer, and Mortgage Lending.

Inc. All rights reserved. 21-4 As a result of declining interest rates in the 1990’s, rising household income, and bank thrift acquisitions, mortgage lending by banks has increased rapidly. Diversification into residential mortgages is one factor contributing to the/ 1983, pp. 23-27. Copyright © 2000 by Harcourt, Inc. All rights reserved. 21-21 Loan Terms Base lending rate Noninterest terms and fees for the loan Maturity and timing of payment Loan amount Collateral or other secondary sources of payment /

Base Rate and Impact on HFCs 30 th CEO’s Meeting of HFCs Presentation by Ms. Renu S Karnad Managing Director - HDFC September 7, 2010 1.

actual lending rates 3 Base rate of banks Base rate of banks 4 5.50% Bank of Tokyo Mitsubishi 7.00% DBS Bank Dhanalakshmi Bank IndusInd HSBC Yes Bank 7.25% Citibank HDFC Bank Kotak Mahindra Bank Standard Chartered Bank of Nova Scotia 7.50% Axis Bank ICICI Bank Sinhan Bank State Bank of India State Bank of Indore 7.75% Corporation Bank Developmental Credit Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Travancore Federal Bank/


the loan contracts. First, the length of the relationship with the bank is associated with significantly lower interest rates, lower probability of firms pledging collateral and exceeding the credit limit established in the contract. RESULTS Second, the exclusivity of the bank-borrower relationship, Multiple lending, has mixed effects on the outcome of the lending process. Third, consistent with the notion that the scope of the/

Money & Banking Video 05—Money Supply The Money Supply Process (Chapter 14) Tools of Monetary Policy (Chapter 15) Hal W. Snarr 8/20/2015.

/1/03 the Fed began setting the discount rate 100 basis points (1 pct. points) above its federal funds rate target. So the Fed raises the discount rate to 3.5 3 SRSR 3.5 SRSR SRSR Lower R N means banks have less cash to lend to consumers and business. The money supply decreases via decreased lending If m = 4, then  MS = 4(-0.5/

Eurex Clearing Lending CCP Overview on the CCP service for securities lending December 2015.

non-cash collateral - bonds & equities Clearstream Banking Luxembourg Euroclear Bank Loan Deliveries, Mark-to-Marks, Re-rates, Recalls, Returns, Buy-ins Corporate Actions, dividend payments Automated billing (lending fees & rebates) Transactions Markets Collateral Tri-party collateral agents Post-trade functionality Lending CCP serves the key elements of the securities lending market 6 www.eurexclearing.com Eurex Clearing Lending CCPDecember 2015 7 Lending CCP operates an integrated solution for/

Restricted The Relationship Between Bank Lending Rates, Policy Rates and Bank Funding Costs After the Global Financial Crisis by Anamaria Illes, Marco.

in September 2008 Based on the pre-crisis relationship between bank lending rates and policy rates, it would have been reasonable to expect lending rates to have fallen by similar amounts. But lending rates did not fall as much as policy rates did Restricted 3 Short term lending and policy rates Restricted 4 Long term lending and policy rates Restricted 5 Developing a bank funding cost We construct a weighted average cost of liabilities/

Credit RISK MANAGEMENT in Banks (Basel Norms) Ramesh Subramanian M.com., C.A.I.I.B.,F.C.S.,LL.M.,ACMA.,CIMA Adv.Dip.MA (UK) June 11, 2016.

RBI wants to maintain ample liquidity in the system, hints that it is now less worried about inflation and is keen that banks should transmit lower rates to borrowers. As banks have been citing tight liquidity as a key constraint to lowering lending rates, this is good news for your home loan, car loan and other EMIs. Liquidity matters The bottomline More money in the/

International Banking Regulatory Framework Session 2.

), the wholesale price and consumer price indexes, and nominal wages of the borrowers country while lending. International Banking Factors—Real Exchange Rates (5) Exchange rates play a vital role in international banking activities, because various currencies are involved in the transactions undertaken by the international banks. The real exchange rate is computed from the nominal exchange rate by taking the inflation also into account. The high real exchange/

Illiquidity, Financial Stability, and Interest Rate Policy Douglas W. Diamond and Raghuram Rajan University of Chicago Booth School and NBER.

and households are worse off, even with a household friendly planner/central bank. 27 Solution: Further constraints on ex post intervention Central bank lends at the market rate but there is an additional non-pecuniary penalty to borrowing from it. Banks will push up market deposit rate rather than borrowing from central bank. In equilibrium, rate never goes below household friendly one (Bagehot except cost non-pecuniary to/

NAACP Economic Department 1. Our Current Financial Picture Mortgage Lending (Basics and History) What is Predatory Lending? History of Predatory Mortgage.

greater risk. 28 Roughly 90% of subprime mortgages made from 2004 to 2006 came with exploding adjustable interest rates. Roughly 45% of subprime mortgages approved without fully documented income. Roughly 75% of subprime mortgages have no /or rushing to foreclose before considering home-saving options. Authority: Truth in Lending Act (TILA), Real Estate Settlement Procedures Act. Overdraft and Bank Fees: Stop banks from tricking people into incurring overdraft fees, help consumers get the cheapest overdraft/

Florin Georgescu First Deputy Governor National Bank of Romania

demand for loans will adjust to the new conditions The Perspectives of Lending (2) Supply of loans Bank lending will resume, although the pace of growth will be slower than that recorded previously (e.g. 2007) A downward adjustment is expected for deposit interest rates, which will also push down lending interest rates The banks will undergo a restructuring process following increasing pressure on profitability and from/

Banking Systems, 2e © Cengage/South-Western Slide 1 MORTGAGES 7.1 7.1 Mortgage Lending 7.2 7.2 Mortgage Loan Processing 7.3 7.3 Mortgages and the Law 7.4.

lending institutions and combines them into large groups, selling interest in the groups to investors Banking Systems, 2e © Cengage Learning/South-Western Slide 28 THE COMBINED IMPACT OF FANNIE MAE AND FREDDIE MAC Government-sponsored enterprise (GSE) A business that receives some legal exemptions and privileges from the federal government, which, in effect, lowers its operating costs Can charge lower interest rates/. Banking Systems, 2e © Cengage Learning/South-Western Slide 35 LOWERING LENDING CRITERIA/


outstanding mortgage loans to GDP (not scaled) US 1998: 53%EU-15, 2001 : 39% © Bertrand RENAUD. World Bank Seminar. 10 th February 2003 Overview of housing finance issues in emerging markets 9 BREAKDOWN OF LENDING RATES: MEXICO, 4Q-1993 Macroeconomic volatility affects long- term residential mortgage lending disproportionately. FIRST AND FOREMOST: macroeconomic stability is a prerequisite Source: Glaessner & Ochs, 1994 4Q-1993 Recurrent episodes/

Introduction to Banking Mishu Tripathi. History of Banking in India-Phase I Three presidency banks were established in Calcutta (1806) in Bombay (1840)

. Based on the current account variant you choose, you will be eligible for a host of services at free/concessional rates. Companies, firms and other business entities primarily use this account. KNOW YOUR CUSTOMER- KYC Know your customer norms are/ Nomination is also encouraged. The second most primary function of a commercial bank is to ‘Lend’. In fact lending and accepting deposit are bread and butter of a commercial banks. Advancing of Loans Loans are given for Consumption Trade and Commerce Agriculture /

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