A bank can be defined as any person that provides the minimum banking services and which is licensed as a bank by federal government in Nigeria as banking institution.
This minimum banking service includes:
a.Acceptance of deposits from customers
b.Marketing payment locally or outside Nigeria
c.Granting loans and similar instruments
There understood the World Bank (IBRD) little is known about grant banking benefit the middle age the Greeks and Mesopotamia hand bank as did the remains those civilizations regarded banking as “unnatural” but some bank allowed to operate.
The term bank was derived from the Latin because which refers the nature of the institution changes over the year, the regard of commission it entrusted by the Breton the woods conferences with working oil of charier of the (IBRD), concluded that it was accalerelally loan with name bank mainly because satisfactory name coved be found in the diction any of this unprecedented institution. Nevertheless, this designation seemed to define adequately the institution behaviour for the first fifteen years of its life. The bank took pains to present itself as a sound financially undertaking and adapted standard.
Common to commercial financial institution, economic back words i.e. regarded as a problem that could be dealt with by relying on the normally process of financial institution, that by raising capital in the richer countries and transferring it to the needy ones. Once the dept and corporeity of the problem face by the developing countries were recognized the conventional term of investment lending because and widely even destination castrate.
The concept of bank as a financial institution model a tradition investment bank face may to a vision of a development of finance institution. Ten years of experience were enough to bring about this transformation in the concept of the bank from this short history for banking and its development.
Computers have been in use for financial application many years, when computers can be employed in the following areas.
a.General accounting (pay roll, inventory/general ledger and accounts receivable.
b.Budget and tax planning.
c.Analysis of investments (such as stocks and bonds commodities and real estates).
Given the increasing value of transactions, they deal with banks have fully embraced the use of computers to enhance their efficiency. Many banks now use computers for their normal across the computer operations. Computers are used for keeping customers account. Transactions such as cash withdrawal and deposits are interred into the computer through various terminals in addition to the traditional banking operations; the computer is now used in such newer areas as electric fund transfer money almost instantly from one location to another.
Another aspect of the use of computer in banks is NNCR changed most banks now carry out their transfer with special type of daggle micro cheques (MICR is pronounced banked these cheques have number of characters, which represents the cheque. Number account number code. The characters are encoded with special ink containing iron oxide that becomes passing through a magnetic field. When characters are then passing through the micr reader it decodes the magnetic field pattern formed by the generated characters and reconales the number the cheque.
When a bank customer present a cheques to be cashed, the bank also encodes the amount on the cheques in additional to the cheques number account number and branch that have being pre-coded thus, the micr cheques numbers all the required data input to process the cheques.
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