Meaning and Definition of Bank

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The word "Bank" itself is derived from the French word "Bancus" or "Bank" or "Banque" which means a bench. The bankers are made their business transaction on benches in the market place. The word "Bank' was originally from Gernan word 'Back' meaning a joint stock fund. Later it was italianised in to "Banco".

The experts on banking subject have offered different definitions. With all the grammatical variations and synonyms, almost all the definitions emphasize the twin aspects, viz, accepting the deposits and lending for various purposes. Let us examine these definitions.

According to Kinley "Bank is an establishment which makes to individuals such advance of money as may be required and safely made and to which individuals entrust money when not required by them for use".

According to H L Hart "A banker is one who in the ordinary course of his business, receives money, which he pays by honoring cheques of persons from whom or on whose accounts he receives it".

According to Crowther "The banker's business is, then, to take debts of other people, to offer his own in exchange and there by to create money".

In the Banking Regulation Act of 1949, Banking is defined as "Accepting for the purpose of lending or investment of deposits of money from the public repayable on demand otherwise and withdrawable by cheque, draft, order or otherwise".

The OXFORD dictionary defines Bank as "financial" establishment, which uses money, deposited by acquired, make loans at interest, exchange currency etc.

According to SAYERS "Bank is an institution whose debts are widely accepted in settlement of other people's debts to each other".

Check the Origin and Evolution of Banking from here

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