Essay On Commercial Banking

Commercial Banking

The World of banking is changing rapidly and the days of high street branch and local branch manager are passing. Telephone banking, PC access to accounts and other banking services are playing vital role in this contemporary world. The fact that banking figures are important and they are readily available in a large number of countries has not meant that banking conditions as between different countries could be readily compared. In each country, those figures which are available represent samples covering predominantly the larger banks in the larger cities.

And here we talk about the Commercial banks which have a greater capacity for varying the aggregate volume of credit than other financial intermediaries. Banks are therefore potentially a more important source of cyclical instability. There is a huge difference between commercial banks and other financial intermediaries which can be sharply drawn. The differences that do exist have little intrinsically to do with the monetary nature of bank liabilities. And the differences are more importantly related to the special reserve requirements and interest rate ceilings to which banks are subject. Any other financial institutions subject to the same kind of regulations would behave in much the same way. Thus, commercial banks are different because they are controlled and not the other way around. Commercial banks do not possess, either individually or

James Meigs, The American Economic Review. o The uniqueness of Commercial banks-Jack M. Guttentag and Robert Lindsay, Journal of political Economy. o Commercial banks – Winfield W. Riefler, Journal of the American Statistical Association. o Principles of Banking and Finance by George W. Edwards- E. A. Kincaid, the American Economic Review. o Profit Planning in Commercial Banks-Ronald L. Olson, The journal of Finance. o Commercial banking in the planned economy of India-Chitta Ranjan