Experts like W.H.Steiner and Eli Shaprio have given the meaning of Commercial Bank very broadly. As per their opinion the term “Commercial Banking” is misleading. The word ‘Commercial’ came into wide usage because of the general belief in Great Britain a century ago that banks which issue demand liabilities – either bank notes or demand deposits – should restrict their advances to short-term loans for Commercial productive purposes. Thus the bank’s liability would be supported by commercial paper. Times have changed, or banks are now more industrial than commercial. They combine other activities with their original commercial banking functions. Our usage of the term commercial is not so much a matter of correct description of what commercial bank does as it is a matter of convenience in using a widely accepted term”.
Charles R.Whihlesey, Arthur M.Friedman and Edward S.Herman have not only defined the term ‘Commercial Bank’ but also the ways in which these banks are regulated. They wrote, “It is important to bear in mind that the Commercial Banks are profit seeking businesses, trading own debts (deposits) for higher yielding debts of others (notes, bills and longer term securities). With few exceptions, banks are corporations, owned by stock holders that are interested in the size of earnings and dividends and whose welfare is a major concern for the bank management. It is true that banks are closely regulated by law and by supervisory authorities with respect to
• The volume and type of services
• Kinds and proportions of loans and
• Investments that may be made
• Accounting practices and other matters
The common criticism about LoanMax is that it works solely with the profit motive. It is true in one sense, but
rod aycox has been able to meet the immediate financial needs of scores of entrepreneurs and small businesses like no one else.
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