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The key aim of a commercial bank is to make a profit for its shareholders. The main way it does this, is by giving loans (which bankers often refer to as advances). Another aim which can conflict with the key aim is what is known as liquidity. Banks have to ensure that they can meet their customers' requests to withdraw money from their accounts. To do this banks have to keep a certain amount of, what are called liquid assets. These are items which can be turned into cash quickly and without incurring loss. Banks earn most of the interest by giving long term loans. However, if they tie up all their money in such loans, they would not be able to pay out cash to the customers requesting it. They have to balance profitability and liquidity - having some assets earning high interest but being liquid and having others earning low or no interest but being liquid
What else can I help you with?
Can you give me an example of a commercial organization?
private banks
What is the iShares Commercial background music?
Elles Bailey and Brian Banks - 'who am i to me'
Who are the characters in the fresh prince of belair?
will uncle phil aunt vivian jeffrey carlton nicky hilary ashley
Who is the main actor on farmers insurance commercial?
J.K. Simmons, who plays Juno's dad, Mac, in the movie Juno.
Who is the old lady with Ellen in the jcp commercial?
In the JCPenney commercial featuring Ellen DeGeneres, the old lady is portrayed by actress and comedian Betty White. She adds a humorous and warm touch to the ad, embodying the spirit of holiday shopping and family. Their chemistry highlights the fun and festive atmosphere that JCPenney aims to promote during the holiday season.
What does the Fed do for commercial banks?
The main thing the Fed does is that it is the Bank that Banks deposit their money in.
What are the types of banking in India?
The 3 main category of Banks in India are:Regular - Commercial BanksUrban Cooperative BanksRural or Grameen Banks
What is the difference between the commercial banks and micro finance banks?
The difference between the commercial banks and micro finance banks is in their functions and ability. The main difference is in the lending limits with micro finance banks having lower limits.
What are the main and initial activities performed by the commercial banks in industrial finance?
NO
Classification of Banks in India?
Classification of Banks in India is done into four main classes. The classes include commercial banks, savings banks, public sector banks and private sector banks.
The main functions of the National Bank of Ethiopia?
To license & supervise banks & hold commercial banks reserves & lend money to them.
How many scheduled commercial banks in Bangladesh?
Total number of private commercial banks is 36 including 8 Islamic commercial banks. And there are 9 foreign commercial banks in Bangladesh.
Aims and objectives of cooperative banks?
the main aim of cooperative bank is to promote financial cooperation among low income group.
Is the main purpose of Government regulation of Commercial Banks to protect its stockholders or its depositors Why?
provide protection of the people
Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
What are the Aims and objectives of commercial bank?
The aims and objectives of commercial banks primarily focus on profit maximization, customer service, and risk management. They seek to provide various financial services, including accepting deposits, granting loans, and facilitating transactions, while ensuring the security and liquidity of their assets. Additionally, commercial banks aim to foster economic growth by supporting businesses and individual borrowers, and they often strive to maintain regulatory compliance and uphold financial stability within the economy.
How does the economy affect banks?
Commercial banks - NO. National banks - YES.
