8.03.2)Bank: | de®
9h
a There is no unanimous opinion as to
when and how the word “Bank” was
derived. But it Is assumed that this
word derived, from the ancient Latin
words “Barico” , “Bangk", “Bancus”
and “Banque”. Meaning of these words
is long bench. Once a class of people
used to sit in the bench particularly in
Lombardy street_of Italy for taking
deposit and lending money as a
banking business.
Definition of Bank:
Different authors have defined the “Bank”
in different ways with a common principle
to accept deposit from the public and
lending the same to the borrowers.
Some important definitions are:
“A bank is an establishment which trades
in money, and establishment for deposit
custody and issue of money, and also
granting loan and discounting bills and
facilitating transmission of remittances’
from one place to another”
... from Imperial Dictionary.
08-03-2017Definition of Bank:
= “An organization through-Which funds in the
form of money of~Claim to money are
assembled and Aransferred from those
individuals and/Airms having a surplus of
economic goods(as_ represented by such
funds) to other individuals & firm whose needs
for funds exceed their existing supply”
.-» from Rollin G. Thomas.
“Banking” means the accepting, for the purpose
of lending or investment, of deposits of money
from the public, repayable on demand or
otherwise, and ‘withdraw able by cheque,
draft, order or otherwise.
.-from The Bank Company Act, 1991
Definition of Bank:
= In the context of risk management in the banking
business it may be defined as:
= Collecting/accepting of fund from the public for
investing/lending of the same to earn optimum level
of return by managing all relevant risk factors
involved therein.
The core risks in the banking business are -
+ Credit Risks
+ Asset and Liability/Balance Sheet Risks
« Foreign Exchange Risks
+ Internal Control and Compliance Risks
+ Money Laundering Risks
» IT Risks
@ Bangladesh Bank has provided required guidelines in
the form of a manual against each risk.
08-03-201