| Bank is an institution where you can deposit your | | | | Banks provides the facilities of collection and paying |
| money and borrow loans. Where by banking is a | | | | agents for all their customers. It also internally takes |
| process by which bank provide different facilities to its | | | | part in clearing and settlement department to present, |
| customer related to their needs and also advance | | | | collect and pay payments instruments. For creating |
| loans by taking securities in return. Banking operation | | | | more credit and to increase the transaction banks |
| means how bank operates or simply what facilities | | | | work as a middle men and borrow and lend loans. |
| bank provides. Banking is a wide term which normally | | | | Mostly bank lend money to those who deposit |
| base on two major parts deposits and advancing loan | | | | securities or bond etc. the security on banknotes and |
| (credit). | | | | deposits are comparatively low. |
| Deposits are in form of cash and securities; these | | | | Bank borrows short term loans from one person and |
| were received by the individuals, firms and | | | | lends long term loans to another person and also |
| corporations, and are repayable on demand of | | | | charged high rate of interest. For creating stronger |
| customer or may be invested in short term loans. | | | | credit quality banks have to maintain high reserves to |
| Current, fixed and saving accounts are used to deposit | | | | clear the unexpected claims or for economic stability, |
| money in the bank. Borrow loans means advancing the | | | | more investment in marketable securities. Banks used |
| money in term of loans to individual, groups and | | | | different ways or channels to elaborate banking |
| organization. Banking operations includes functions of | | | | operations ATM machines are used to withdraw |
| banking, creation of credit, transfer of funds or | | | | money by using a ATM card, its contain a special |
| services, saving, mortgage, private banking, online | | | | code which relates to the same account. Call center |
| banking, projects developments, capital markets and | | | | and branches are also means of exchange of |
| treasury, trade finance, issuing bill of exchange, bill of | | | | information which is necessary and important for |
| exchange is issue on three basis at par, at discount | | | | every customer. Online and mailing banking is also used |
| and at premium. | | | | to access to the customers problems and many |
| Operation of commercial banking are of two sided; | | | | transaction and disbursement are used to be done by |
| involve attracting funds from depositors, and | | | | online banking. Mobile banking is also done by many |
| employment of funds in viable investments. The bank | | | | banks these activity is more advance than other |
| creates credit by issuing credit cards, ATM cards, visa | | | | payments of bills and other disbursements are done |
| cards etc. Banknotes and current accounts are used | | | | through mobile phone. Telephone and video banking is |
| by the bank to issue the money. Claims are negotiable | | | | also a mean or a channel to communicate with the |
| and repayable on demand, while drawing a cheque or | | | | customers or the persons who need to know abut |
| creating banknotes claims are effectively transferable. | | | | banking operations more descriptively. |