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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
Some of the different services available from major banks to its customers are:
- Checking/Current account
- Savings accounts
- internet/Mobile Banking
- ATM Cards
- Check Books
- Deposit Accounts
- Loans
- Credit Cards etc.
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NO
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