PRESENTATION ABOUT BANKING

Hi guys, my name is Bao Ngoc and this is my presentation. Before my presentation

I have a quick question for you: How many types of banks are there and what are
they? So who can give me the answer?
So absolutely this is a correct answer. In my presentation today, I will discuss
about two types of banking. The first is commercial bank.
The term “commercial bank” refers to a financial institution that
accepts deposits, offers checking account services, makes various loans, and
offers basic financial products like certificates of deposit (CDs) and savings
accounts to individuals and small businesses. A commercial bank is where
most people do their banking.
Commercial banks offer basic services of banking to the public including individual
customers as well as small and medium-sized businesses. Money is made by banks
by charging for services and fees. The fees depend on the products given such as
overdraft fees, fees for safe deposit boxes, late fees, etc. Various loans also consist
of fees other than interest on loans.

Banks earn money by giving out loans and for that purpose they use funds from
customer deposits. They charge higher interest rates on loans they give out and
comparatively less rate of interest on the amount they get as deposits from their
customers. For e.g., a bank may provide a 0.30 per cent rate of interest on savings
account to its customers but charges a 4.8 per cent rate of interest annually for
home loans.

Significance of Commercial Banks

Commercial banks are an important part of the economy . They not only
provide consumers with an essential service but also help create capital
and liquidity in the market.

Commercial banks ensure liquidity by taking the funds that their customers
deposit in their accounts and lending them out to others. Commercial banks
play a role in the creation of credit, which leads to an increase in production,
employment, and consumer spending, thereby boosting the economy.