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COMMERCIAL BANK (Secondary functions (collecting and clearing cheques on…
COMMERCIAL BANK
definition
provides financial service to customers (accept saving deposits, approve bank loans or mortgages)
Accepting deposits
deposit: sum of money kept in bank acc, usually to gain interest
accept deposits from customers including private individuals, businesses and governments
businesses deposit cash in commercial banks for the convenience of financial operations (pay suppliers, employees
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Making advances
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advances include overdrafts: a banking service that allows approved customers to withdraw more money than they actually have in acc
mortgages: long-term secured loans for the purchase of assets such as commercial and residential property
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Secondary functions
- collecting and clearing cheques on behalf of their clients
- offering additional financial services e.g tax advice, foreign exchange dealings and the buying and selling of shares
- providing safety deposit boxes for customers to protect highly valued possessions
- providing money transfer facilities e.g transfer money to an overseas bank acc, pay various bills such as telephone, electricity, gas and water bills
- offer credit card facilities for the convenience of customers
- offering internet banking facilities e.g online payments, wired bank transfers, foreign currencies
Examples in Vietnam
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3. Vietcombank the bank had 89 branches in Vietnam, 3 local subsidiaries, 2 overseas subsidiaries, 3 joint ventures, one associate, an overseas representative office in Singapore