BANKING FINANCE

Bank is financial institution which deals with the accepting of the depositing from the people and granting loan to needy person against the security. Bank helps in the finance system of the economy. The banks give interest on the deposit and provide loan and takes interest which helps to balance the finance system. Banking finance is the widely used term that deals with the transaction of money.

Bank also provide loan to needy for hire and purchase of different machines and equipment such as car, taxi,motorbike,washing machine and others with the collection of the deposit. In Nepal banking system helps to uplift the standard of life of the poor people by providing loan. Banking helps to collect the deposit and grant the loan. So bank is the most important institution involve in finance of the country. In finance, the financial system is the system that allows the transfer of money between savers and borrowers. It comprises a set of complex and closely interconnected financial institutions, markets, instruments, services, practices, and transactions. Financial systems are crucial to the allocation of resources in a modern economy. They channel household savings to the corporate sector and allocate investment funds among firms; they allow inter temporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks.