What are the functions of banks and services provided by them to their customers?banks as an institution, types of accounts, ways of conducting money transactions
Banks and services are the credit creating institutions. The banks collect savings from people and form capital. such formed capital is further mobilised in productive sectors. usually they lend it to the industrialists in the form of borrowings and long term loan, invest in companies' shares and other financial instruments, transfers payment from one country to other country on behalf of importers and exporters. they also reder Letter of Credit account services to the traders. besides banks issue credit instruments like; ATM, Master Card, Visa Card, Debit Card, bank draft, Credit Card and others. the Central Bank has more prominent role in formulating and implementing monetory policies of the country.
Additionally, banks help in uplifting the living standard of the customers by yielding more interest to them and helping them to start and run their businesses.