Volume : IV, Issue : XII, December - 2015

COMMERCIAL BANKS: SOME REFLECTIONS

Dr. P. Chinnurappa

Abstract :

COMMERCIAL banks are distinguished from other financial institutions primarily by their acceptance of demand deposits. Deposits provide them with funds but their responsibility for the liquidity and safety of the deposits limits the use of these funds. The privilege of receiving deposits is accompanied by an elaborate framework of legal and supervisory controls designed to protect depositors and govern the monetary effects of demand deposits. In addition, most states have adopted laws that set ceiling rates on various types of consumer credit extended by commercial banks. Consumer credit is a relatively new and, in most cases, still a minor outlet for the funds of banks. Commercial banks held $18.8 billion of consumer credit at the end of 1959, but this amounted to only 10 per cent of their total loans and investments. The importance of consumer credit at individual banks varies widely

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr. P. Chinnurappa Commercial Banks: Some Reflections International Journal of Scientific Research, Vol : 4, Issue : 12 December 2015

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