The best advantage of banking business for the new banking business man. Are you know that Money is the product of banking business even it means money market products of the bank. So the bank business is circulated around money transactions. Now, on this page, I will show the best advantage of banking business or the best nature of banking business. This is helpful aspects for us to know clearly about the nature of banking business. In this below, you would be able to see the nature of bank business.
Best Advantage of Banking Business
Before going ahead, you have to know the necessity of bank in economic development. This is the best part of the nature of banking business. It will help you to know why Bank is important in economic development. However, now go ahead and get an idea about the nature of banking business or advantage of the banking business.
#1. Financial Institution
Banking existence is meaningless without money. The bank’s work is being managed financially around money so that Bank is a financial institution. It’s easy to understand about the bank is a financial institution. According to the banking facility, bank helps us on the money transaction section. A bank helps us by providing land at the important moment. After all, the bank is a financial institution.
#2. Intermediary Institution
The bank collects surplus money from the public as a deposit then the person or organization to pay the deposit as a loan. After all, mediate is the bank’s work even all the mediate work is finished by Bank. Therefore, the bank collects a large amount of interest and earns more interest and the difference between the two interest rates is the profit of the bank. As a result, we can say that Bank is an intermediary institution.
#3. Collecting Deposit
From the general public, the bank collects money as a deposit. The surplus money collected from the people is the capital of the bank business. Bank collect money from the various section also using the best strategy. On the other hand, Banks accept deposits as short, medium and long-term deposits. So collecting deposit is one of the best nature of banking business.
#4. Loan sanction & Money Transfer
Collected deposits can be given as a loan to individuals or organizations with a higher interest even this is a basic function of the bank. Banks always offer short, medium and long-term credit facilities to the customers. So loan sanction is one of the best parts of the best advantage of the banking business. On the other hand, the bank’s contribution is highest to transfer money from one place safely to another place. So this is a most important medium for transfer money. Most of the bank’s contribution as a means of transferring money to global commercial transactions. After all, money transfer is one of the best important aspects of the banking business.
#5. Underwriting & Agency
During the issue of shares and lenders of different companies, the bank has worked as an underwriter for the issuer. According to this banking formula the bank takes responsibility to sell shares of bankers to the public as a result, underwriting is a part of nature of banking business. On the other hand, the bank serves as the representative of the customer in providing services such as payment of money, transfer, information collection etc. All service on behalf of the customer and banker, as a result, the bank is the role of the customer’s representative.
#6. Providing Other Services
Daily on the banking services are adding new services even that the nature of the banking business is timely. Such as Mobile banking, online banking, electronic banking facilities etc. However, I hope I had been provided the importance information front of you and you would be able to understand the nature of banking business facility even the best advantage of the banking business. So these all facility is a banking business facility. Now, go ahead and make your banking business successfully, securely and nicely.