read more, and open market operations Open Market Operations An Open Market Operation or OMO is merely an activity performed by the central bank to either give or take liquidity to a financial institution. The aim of OMO is to strengthen the liquidity status of the commercial banks and also to take surplus liquidity from them. read more, i.e., buying and selling government securities, to regulate liquidity in the economy. #2 – Banking Servicesįinancial institutions, like commercial banks Commercial Banks A commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits. read more, help their customers by providing savings and deposit services. In addition, they offer credit facilities Credit Facilities Credit Facility is a pre-approved bank loan facility to businesses allowing them to borrow the capital amount as & when needed for their long-term/short-term requirements without having to re-apply for a loan each time. read more like overdraft facilities to the customers for catering to the need for short-term funds. Commercial banks also extend several loans like personal loans, education loans, mortgages, or home loans to their customers. #3 – Insurance Servicesįinancial institutions, like insurance companies, help to mobilize savings and investment in productive activities.
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