#focusonExam: Commerce GCE ‘O’ Level – 16 Mai 2020

COMMERCIAL BANKING : Privately owned and Aims – profits


  • Acceptance of Deposits – Custodians of valuables
  • Granting Loans – Night safe
  • Acts as agent of payment – Cash dispenser


  • ACCEPTANCE OF DEPOSITS : oldest function
  • Current accounts,

Deposit account                                                                        ADVANTAGES OF CURRENT ACCOUNT

  • Fixed deposit accounts   – Businessman can carry out his activities regulatory & promptly
  • CURRENT ACCOUNT :                       – Businessman can make direct payments to creditors via cheques

Withdrawn at any time with cheque                      – Enables the bank to collect money on behalf of customers

– Account holder is given cheque                                – Enables the account holder to obtain overdrafts & other loans.

– Customer pays bank charges                                   – Can conduct internet or online banking

– Can be given loans & overdrafts

– No restriction as to number of withdrawals

– May be given a bank statement

  • DEPOSIT ACCOUNT: Money is deposited at any time & withdrawn at anytime but notification of 7 days or charges. (to promote savings )
  • Issued pass books
  • Customer is paid interest
  • Withdrawals are made with use of passbook
  • Customer must maintain a minimum amount in his account.
  • No loan or overdraft facilities.



  • It encourages savings.
  • The account holder can earn incomes from interests
  • It help account holder to carry out online shopping (internet banking)
  • It keeps records of all online transactions
  • It provides ATM facilities.


FIXED DEPOSIT ACCOUNT: This means the account is for a particular purpose and times. The deposit is fixed and repayable only after a specific period of time. Interests paid on this account depends on the amount, period & from bank to bank.



  • The purpose is fixed
  • The amount can, is some cases be deposited only once.
  • The period may range from 15 days to 10 years.
  • A higher interest rate is paid to holder by the bank.
  • Withdrawals are not allowed until.
  • The depositor is given a deposit receipt which may need to be reproduced at maturity


ADVANTAGES OF FIXED DEPOSITS :                                  GRANTING OF LOANS :

  • It encourages savings – Direct bank loans (collaterals securities)
  • The account holder earns higher interest rate – Bank overdrafts
  • Account holder can obtain loans                          – Discounting of bills.
  • The bank can give it out as loans to business in need.


BANK LOANS (Collaterals securities)


  • Credit worthiness of customer
  • Amount of the loan
  • Duration of loan
  • Purpose of loan
  • Ability of borrower to manage the loan.
  • The age of the borrower
  • Bank’s lending policy
  • Collateral security provided.

Laisser un commentaire

Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Ce site utilise Akismet pour réduire les indésirables. En savoir plus sur comment les données de vos commentaires sont utilisées.