Introduction to Bank
The bank is must for a modern economy. Like other business, a bank is a business which is closely connected with the transaction of money. At present no one can live without money and without a bank, the safe and sound transaction of money is not possible. Where there is money there is a bank. In present days banking business is widely practiced. It is doing multidimensional activities. A bank is doing many important activities for the development of society as well as tor the country. So, no one can deny the importance of bank. It is said that bank is the soul of the modern economy. Commercial banks are the type of financial institutions that lend money and provide transactional, savings, and money market accounts and that accepts time deposits.
A bank is a licensed and regulated financial institution that lends money, accepts deposits and carries out other financial transactions for its clients. There are three main types of bank: Central banks, Investment banks, and Retail banks.
History of the banking development suggests that banking and economic development are closely inter-related. Either banking followed the economic development as in the case of United States of America or the economic development followed the development of banking as in the case of the United Kingdom and the Europe. The ‘venture Bankers” of the 19tth century Europe mobilized and multiplied the financial resource of the society for industrialization. Through the supply of the Venture, banker acted as the engine of economic growth.
Economic development under the circumstances is nowadays measured not only in the terms of GDP growth but also in terms of HDI which covers all the aspect of economic, social life namely, the growth of agriculture, industry, construction, capital formation and service sectors etc.