The bank is an institution where you can deposit your money and borrow money. Where banking is a process through which the bank provides different facilities to its client in relation to their needs and also advances loans by taking securities in exchange. Banking operation means how the bank operates or simply what services the bank offers. Banking is a broad term that is usually based on two main parts: deposits and advance loans (credit).
Deposits are in cash and securities; These were received by individuals, businesses, and corporations, and are repayable at the customer’s request or can be invested in short-term loans. Current, fixed and savings accounts are used to deposit money in the bank. Borrowing means advancing money in terms of loans to individuals, groups, and organizations. Banking operations include banking functions, credit creation, transfer of funds or services, savings, mortgage, private banking, online banking, project development, capital markets and treasury, trade finance, bill of exchange issuance, the bill of currency is issued on three bases: par, discount and premium.
Commercial banking operations are two-sided; they involve attracting funds from depositors and the use of funds in viable investments. The bank creates credit by issuing credit cards, ATM cards, visa cards, etc. The bank uses banknotes and checking accounts to issue money. Claims are negotiable and refundable on demand, while claims by writing a check or creating tickets are effectively transferable. Banks provide the facilities to collect and pay agents for all their customers. It also participates internally in the clearing and settlement department for the presentation, collection and payment of payment instruments. To create more credit and increase transactions, banks function as intermediaries, borrowing and lending. Most banks lend money to those who deposit securities or bonds, etc. the security of banknotes and deposits is comparatively low.
The bank takes short-term loans from one person and lends long-term loans to another person and also charges a high interest rate. To create stronger credit quality, banks have to keep high reserves to settle unexpected claims or for economic stability, more investment in marketable securities. Banks use different forms or channels to elaborate banking operations. ATMs are used to withdraw money by using an ATM card, they contain a special code that is related to the same account. The call center and the branches are also means of exchanging necessary and important information for each client. Online and mail banking are also used to access customer issues and many transactions and disbursements are made using online banking. Many banks also carry out mobile banking, this activity is more advanced than other bill payments and other disbursements are made through the mobile phone. Telephone and video banking is also a means or channel to communicate with customers or people who need to know banking operations in a more descriptive way.
