DESTINY EDUCATIONAL MATERIAL
CHAPTER-I INTRODUCTION 1.1 Background of the Study 1.1.1 Concept of Bank A bank is the financial institution which deals with the money and credit. Bank is most important financial institution in the economy and essential business in any countries. Generally, it collects deposits from general people and provides loan by charging a certain rate of interest. Thus, the accumulated money can be advancing loan in different sectors such as business, foreign trades, agricultures, industries, social works and individual also for different purpose with certain charges. Beside, a bank also involves agency services like remitting and collecting cash on behalf of its clients, opening bank draft and underwriting shares of newly established company etc. Bank has a vital role to develop a country’s economic growth. A bank can be defined as those organization which deals with deposits, credits foreign exchanges. Bank gives all kind of financial services to all kind of persons without differentiating with caste, religion, sex, economic condition, nationality etc. According to oxford Dictionary Bank means “an establishment for keeping money and valuable things safely, safety of the money being out on the customer order by means of cheque”. “A bank collects money from those who have it to spare or who are saving it out of their incomes, and it lends this money to those who require it”. - C.R. Crowther “A commercial bank is a bank, which deals in exchanging currency, accepting deposits giving loans and doing commercial transaction’.-The commercial Bank 2003 A bank is an institution established by law, which deals with money and credit. Bank fulfills the investment requirement of saver with the end it needs of investors. In this way bank plays on imperative role in our economy by providing effective service efficiently towards the attainment of economic development. Therefore, bank means a financial establishment for the deposit, loans exchanges issue of money and for the transmission of funds. 1.1.2 History of Bank The word “bank” is derived from the Italian word “banco” which means bench the people who does transaction of the money by sitting in bench and carry out exchange function. After the completion of transaction if they makes profit they worships the bench and if they make loss they destroy the same bench. In this way same word “banco” letter on turned to “bank”. The evaluation and development of bank did not take place at once in all countries. The history of banking is not exactly known but in 1157 A.D first public bank was established in the name of “Bank of Venice” in Italy. Then after “Bank of Barcelona” of Spain was established in 1401 A.D. and “Bank of Genoce” in 1408 A.D. as public bank. In Netherlands the “Bank of Amsterdam” was established in 1609 A.D. which famous batak at that time. But in reality the modern bank was started only after the establishment of “Bank of England” in 1694 A.D. Bank sector was rapidly developed due to adaptation of technology and 1