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.