20 Best Definition of bank by different authors

It is very difficult to give a comprehensive definition of bank, but different banking experts have defined bank in following words.

1. H.L. HART:

“A banker is one who in the ordinary course of his business, receives money which he repays by honouringcheques of persons from whom or for whose accounts he receives it”.

2. SIR JOHN PAGET:

“Bank is an institution who performs the following functions:

• Acceptance of deposits,
• Advancement of loan.
• Issues and pays cheques,
• Transferring money from one place to an other”.

3. ENGLISH FINANCE ACT 1915:

Bank is a financial institution or corporation, which principally and regularly transacts the business of banking.

4. PROFESSOR CROWTHER:

Bank is a dealer in debts of its own and other people. It accepts the deposits of people and lends to the needy.

5. BANKING COMPANY’S ORDINANCE 1962:

“Banking means accepting, for the purpose of lending and investing, the deposits of money from the public, repayable on demand or withdrawable by cheque, draft, order or otherwise”.

6. KINLEY:

A bank is an institution, which receives deposits and advances loans.

7. REYNOLD:

“Bank is the factory of creating credit”.

8. PROFESSOR GILBERT:

“A banker is a dealer in capital or more properly dealer in money. He is an intermediate party between borrower and lender. He borrows from one party and lends to other”.

9. COMPREHENSIVELY:

“Bank is an institution which deals in money. It accepts deposits from its clients and mates loans and advances to them for productive and non­productive purposes in need”. It accepts deposits at low rate of interest and lends at high rate to earn profit.

10. OTHER DEFINITIONS:

• Banking is a business of dealing in credit.
• Banks are financial departmental stores.
• Banks are using brains and other people’s money.

[CHARACTERISTICS OF BANK]

A bank has the following important characteristics.

1. Receipt of deposits, repayable on demand or otherwise.
2. Lending or investing the money at his own disposal.
3. Collection of cheques and bills on the behalf of customers.
4. The banking business is a major part of its activities.

The word ‘Bank’ or “Banker” is particularly used to describe such concerns.