QS Study

Generally, the proprietor or the directors of the bank are said banker. That means who takes responsibility to run a bank or who runs the banking business is known as a banker. Simply, who do banking is a banker. Person or institution that does banking activities directly is a banker. All persons relating to banking business is the banker.

Prof. G. Crowther: “A banker is a dealer in debts, his own and of other people.”

English Bills of Exchange Act-1882: “Banker includes a body of persons, whether incorporated or not, who carry on the business of banking.”

British Stamp Act-1981: “Any person carrying on the business of banking is a banker.

It appears from the above definition that a banker does three broad functions, namely:

  • Acceptance of deposits,
  • Lending money,
  • Investment of money.

These are the principal functions of a banker, so any person, firm, entrepreneur, director, worker directly related with banking activities is said banker.