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Essay about Banking

OUTLINE

  1. Introduction.
  2. It is very important for modern commerce.
  3. Function of a modern bank.
  4. Banking as a profession.
  5. Requirements for bank  employee’s.

Essay about Banking

Modem financial practice is of a complicated nature having attained this highly developed efficiency after ages of evolution, but the profession of banking in some form or the other has existed even in the earliest times. The original form of banking in our country may have been purely money-lending but with the changing need of times people felt the need of depositing money for safe custody and interest with person’s or businessmen of integrity and character. The money so deposited would etch some interest to the depositor while the persons entrusted. With the money would lend it out to others at a higher rate of interest than he himself was paying. This, I its simplest form, is the practice of banking, lending out on interest moneys that have been deposited by other persons.

Banking is a very necessary wheel in the complicated machinery of modem commerce. It is noticed that countries which are most advanced in commerce and trade have a very efficient and highly developed system of banking. In Pakistan the modem system has not extended far enough and this does to spell well for the country’s trade. Credit plays a very important part in modern business. A perfectly honest businessman may have the capacity to invest money in such a way as to derive a great profit out of it and his business may call for greater investment that he can meet from his own purse. It is in such a case that he is to utilize other people’s money which for them ma’ not have the same productive value. It is the banks that. By supplying the requisite money, not only help the individual concerned in his business, but also realize the full productive worth of money and increase the trade and commerce of the country. Thus an imp9rtant functions of banks is to prevent hoarding of wealth with individuals by taking charge of there money for safe custody with an undertaking to return it either at a definite. Date or on demand. For fixed deposits banks usually’ pay a higher rate of interest than in .other cases, of they can safely invest such moneys in one business or the other for a definite period. In case of, current deposit the banker undertakes to repay the money on demand by meeting cheese of order notes of the depositor aid as he has to produce money at a very short notice; he has to keep a considerable portion of it in hand or invested in such a manner than it can be collected almost at once.

It may not be out of place to mention here the more complicated functions of a modern bank. Besides the function of borrowing and lending, keeping money in safely custody, some banks exercise. Bank also serve as places of safe deposit not only for money but also for jeweler, documents and valuable securities In Pakistan business of all the above natures is done by native banks. The international business of agency for payments between one country and another is done mostly by foreign banks which have their branches in this country.

Scope from the above prefatory remarks it can be gathered that banking as a profession has the potentiality of providing work for thousands of Youngman. The start on the profession. It must be admitted, is not very encouraging and the work is hard especially for the first few years. The hours of office work are generally long and holidays are few and far between. But withal this, banking affords really good prospects for the person with a steady mind who is not afraid of hard work and has lot patience in him. A junior clerk who has had no previous training will have to being at the very lowest rung of the ladder and may have to pick up office routine business of sorting and filing the papers, affixing rubber stamps, bringing the pass books” of customers accounts up date, assisting in classifying the cheques sent in for payment. Later on he may be entrusted with entries in the ledger -- a more responsible and. therefore. Better paid work is done systematically by the clerical staff. Thus from the counter he may be promoted to the chair. If, he is found efficient. he may be given charge of a branch as its manager, in which case he will be responsible for all that is done in the branch and will have to exercise great deal of caution in the amount of credit he allows to busi’iessrnen, the way in which he tackles business problems and the mar nor in which he organizes the work. In the last years of his service he may get a really good post of responsibility at the head office.

It must be made clear that banking does not encourage men who want to get rich quick. The progress is slow but steady and for the competent person there are really good jobs at the top.

Qualification: Patience and love of methodical work. Neatness and accuracy. Amenability to discipline is the essential requisites of a bank clerk, for he has to be formed into an efficient cog in highly complicated machinery. As the bank clerk has to come contact with a large number of customers of varied types, temperament and character, he should have a presentable appearance, good address and manner, reliability and honesty. He must also be the professor of a good general education, for if he aspires to manager ship of or some other responsible job which imposes on him the duty of dealing with a large number of persons, he must have educational attainments to be capable of dealing with varied situations calling forth tact and knowledge of finance, psychology and commercial law. Thus university education up to the degree standard is the generally accepted qualification. Bachelors of Commerce are more eagerly taken into employment by banks than those in arts or the sciences.