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A bank is a dealer of debts-explain

A bank is a financial intermediary, a dealer of loan. Crowther has defined a bank as a dealer of debts-his own and of other people. In one side ,a bank becomes borrower through collecting deposits from people by various account types.—to another side, the bank establish itself as a lender offering debts/loan to people.

The most important function of a bank is to attract deposits from the public. The bank, to throw its net as wide as possible in order to have a rich game, has to maintain a variety of accounts that may suit the needs and tastes of a large body of depositors. Generally deposits are of three types-

1. Fixed deposits: Fixed deposits are those deposits which are withdraw able after a specified period. The longer the period of deposit, the more attractive the rate of interest.
2. Current deposits: Current deposits are withdraw able any time by the depositor by means of cheque. Banks do not pay any interest on these deposits.
3. Savings bank deposits: These are subject to certain restrictions on the amount so receivable or withdraw able. These deposits carry a lower rate of interest.

From banking function, it could be also observed that, a bank collect deposits relatively at small interest rate & it becomes recognized as money/debt dealer through offering the collected deposits relatively at higher interest rate. So, Barbery Black has told about bank that -- in fact, bank is a financial business institution, which collects money as deposit & lends the collected money.

From the above discussion it is clear that, bank is such a intermediary financial institution whose function is collecting or borrowing money by offering various account types from people and the bank lend the collected money at higher rate. It is considered that, The bank is skilled which is success in the borrowing & lending process. So in one word it is called the dealer of debts.