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BANK

  • The term Bank is derived from the french word "BANCO", which means a Bench or Money exchange table.
  • A bank is an "establishment for custody of money", who makes the payments from it on a customer's order.
  • It also brings back money in circulation.
  • A banking company means a company registered under the Indian Companies Act 1956 and which is conducting the business of banking.
  • All the deposits accepted by banks from public are classified as liabilities and the loans & advances along with the investments are classified as assets of the bank.
  • Bank always prepares an Assets & liability statement (ALM), any mismatch in ALM may drag a bank in payment crisis which may result into failure of the bank.

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