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    Commerial Banks

    Uploaded by

    na-tri-li-a

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Commerial Banks

    Uploaded by

    na-tri-li-a
    4 views2 pages

    Copyright

    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views2 pages

    Commerial Banks

    Uploaded by

    na-tri-li-a

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    What are Commercial Banks?

    ● Institutions that offer money transmission services to its customers


    ● Mostly joint stock companies owned by shareholders and controlled by a
    board of directors

    Why do Commercial banks need money?


    ● Payment of taxes
    ● Payment of reserves
    ● Bad debts incurred from customers
    ● Payment for operating expenses and payment to their shareholders

    How do Commercial Banks earn revenue?


    ● Charging fees for services offered
    ● Charging for payments of use of debit and credit cards
    ● Interest rates charged on loans
    ● Buying and selling of foreign exchange

    Commercial Banks
    ➔ Jamaica National Bank Limited
    ➔ JMMB Bank Limited
    ➔ The Bank of Nova Scotia Jamaica Limited
    ➔ National Commercial Bank Jamaica Limited

    Functions of Commercial Banks


    1. Offering loans or credit facilities to customers
    2. Allowing customers to make payments of different types
    3. Loans
    4. Overdrafts

    Accounts Offerings of Commercial Banks


    1. Savings Account(Deposit Account)
    ● Account used to deposit money in the bank to keep it safe while
    earning interest on it.- interest bearing account
    ● It is used by individuals or businesses to keep money that is not
    needed for immediate use

    Paid into account?


    ❖ Using completed credit slips or by electronic banking transfer

    Drawn from account?


    ❖ Using withdrawal slips or by electronic banking transfer

    2. Current Accounts(Checking Account)


    ● Provide a safe place for keeping money that is needed for immediate
    or current use
    ● Allows for the transfer of money from one account to the other
    without the use of cash

    How is payment made in this kind of account?


    The account holder gets:
    ➔ A paying in book of credit slips to pay money into the account
    ➔ A cheque book to allow the account holder to write cheques in payment to
    others
    ➔ Bank cards
    ➔ Bank statement- the bank send you a statement of accounts to inform you
    how much you have paid out, paid in and charges deducted from your
    accounts and the balance

    3. Fixed Accounts
    ● The money remains in the bank for a specified period
    ● The bank pays a higher rate of interest on this type of account
    ● The customer leaves funds in the bank without drawing from it

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