Deposit Mobilization of Commercial Banks in the Context of Nepal

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

commercial banks Thrift Institution are depository institution, banks basically that offer savings and loan they are mutual savings banks and credit unions.

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

Lending institutions have been around since the late 1700’s. Banks are establishments that are authorized by the government to accept deposits, pay interest on deposits, clear checks, make loans, act as an intermediary in financial transactions and provide other financial services to customers.

• Commercial Banking: It meet the needs of corporate when it comes to logistics and infrastructure, transportation and tractor industries.

Commercial banking primarily targets companies and institutions with annual revenues of $25 million to $2.5 billion. Commercial banking offers financial products and solutions including lending and leasing, trade financing, deposits and treasury management, foreign exchange and interest rate risk management and corporate finance.

Commercial banking provides consumers and potential customers with various financial services, such as deposits and loans, in a means of ensuring social stability, economic stability, and sustainable growth of the economy. Commercial banks offer a large range of investment products. While these products are not only for the use of personal accounts, they are also put to great use within organizations. Savings accounts, certificates of deposit, business loans, auto loans and mortgages are all examples of products that are offered in commercial banking. Due to the fact that certificates of deposit, saving and checking accounts are secured by the Federal Deposit Insurance Corporation (FDIC) in the United States, customers and consumers are

The Federal Deposit Insurance Corporation, the institute in charge of regulating commercial banks, became burden with an innovative need to assess the expanding investment activity of the commercial banks. The Federal Deposit Insurance Corporation had previously been assigned the easy task of assessing the commercial banks, within

Capital accumulation involves the rate at which investment in capital occurs, relative to its depreciation (Swan, 1956)- the rate at which an economy possesses productive human and physical resources available to create products and services. As GDP is a function of capital per effective worker, there is a clear relationship between capital and economic growth. (Appendix 1).

A bank is an institution that facilitates financial transactions between the parties. Amongst its standard operations are accepting deposits from the customers, lending money as loan (cite). The major source of income for banks is interest income which is earned on loans given to the customers, business firms and corporations. This very nature of it makes banking institutions so crucial for economic development of any country. Strong banking operations and fundamentals paves the way for higher customer and investor confidence in the company.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

One of the functions of the financial institutions is Commercial Banks. Commercial banks will accept deposits and provide very good security and make it suitable for their customers. This is just a normal role for the bank to give their customers money safe so that their customers don’t have to physically keep their belonging in their home or on them (APB, 2001). With having commercial banks there is no need to keep large amount of money in hand because the banks can handle it such as online banking, checks, debit card or credit card.

Capital accumulation indicates that if the surpluses that are used to invest in the firm, more wealth will be created in the future. Business owners can use the profits to re-invest to build machinery and equipment, this increases output per hour. Using one’s ability in a particular field and better machinery makes it much more

-Banks can include commercial banks, savings and loans, and credit unions. Everyday banks are used to make payments, deposits, withdraw, or talk to bankers about options. Regulations are highly important in the banking industry, protecting customers and economically. Banks gain funds by retained earnings, equity securities, savings, loans, and charging interest rates.

Jefrey Sachs shows that there is a relationship between economic activity, savings, capital investment and increased economic activity. Households use the income for the purpose of consumption, savings and taxes. The government uses tax revenues to current expenditures and development expenditures. Economic capital is produced by household savings and government investments. Higher capital formation leads to economic growth, which in turn increases income households through the impact of income growth.