Commercial Bank Agency Functions. Agency functions of commercial banks. Primary functions of commercial banks.
Savings deposits the commercial bank accepts small deposits from households or persons in order to encourage savings in the economy. The primary function for which the commercial banks were established is to accept deposits from the general public who possess surplus funds and are willing to deposit them so as to earn interest on it. Meaning of commercial banks.
Agency functions of commercial banks.
The surplus balances collected from the firm and individuals are lent to the temporary required of commercial transactions. Maintaining secrecy is one of the best agency functions of commercial banks. The functions of commercial banks are classified into two main divisions. Agency services or agency functions of commercial banks are elaborated in detail below.
