Bank
Bank is a financial institution that accepts the surplus
money of the people in the form of deposit and gives it to other in the form of
loans and advances.
According to professor Chamber, “bank is an office or
institution for keeping, lending and exchanging etc of money.”
Banking
According to oxford dictionary of finance and banking,
“banking is the activities undertaken by bank.”
Bank
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Factors
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Banking
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Bank is a financial intermediary institution.
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1.
Nature
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Banking is the summation of all activities of bank.
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Bank may be sole proprietorship, partnership or any
other form of organization.
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2.
Organizational structure.
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Banking has no organo gram.
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Bank performs the banking functions
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3.
Functions
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Collection of deposits, granting loans etc are the
functions of banking.
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Banker is liable for the bank’s activities.
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4. Liability
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Bank is liable for the banking activities.
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Success of bank depends on the efficiency of the banker.
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5. Success
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The success of banking depends on the size & form of
the bank.
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Bank makes relationship with the customers
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6. Relationships
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Banking make relationship with bank.
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The dissolution of bank is done by the local banking
law.
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7. Dissolution
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When a bank dissolve then the banking activities end.
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Bank is dependent on banker
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8. Dependency
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Banking is depended on the bank.
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Banker initiates bank
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9. Initiation
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Bank initiates banking.
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As a financial institution it has a separate entity.
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10. Entity.
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Banking has no separate entity; it is based on the
entity of bank.
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