INTRODUCTION
The term bank is derived from the Latin Word 'bancus' and Italian word 'banca'
which means a bench for keeping, lending, and exchanging money or coins in the
market place.
According to Commercial Bank Act 1974 section 2(a) Commercial bank means a
bank which conducts currency exchanges transactions, accepts deposits, supplies
credit and performs commercial dealing, other than a bank which has been
prescribed as (established) with cooperative, agricultural, industrial or any other
specific objectives.
Merchants:- They were so popular and creditworthy that the letters issued by them
were treated as good as money. Trading activities were carried out based on these
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letters and the outstanding amount was settled through actual coins on periodic
basis.
Goldsmiths: -Goldsmiths used to have safe to keep valuables. Fear of theft and
robbery led people keep their valuables (goods, silver and metallic coins etc) in the
custody of the goldsmiths. Goldsmiths used to charge commission for safekeeping
and used to return the valuables on demand.
Money Lenders: Money lenders used to give loan to the needy public out of their
own treasury. Later on, savers started depositing their savings/deposits with the
money lender.
As public enterprises, banking made its first appearance in 1157 A.D. in Venice,
Italy, which was Bank of Venice. Following its establishment, lots of banks were
established in different parts of the world. They are bank of Barcelona, Spain in
1401 A.D., Bank of Genoa, Switzerland in 1407 A.D., Bank of Amsterdam, Holland
in 1609 A.D., Bank of England, England in 1694 A.D. These modern banks
gradually replaced goldsmiths and moneylenders. Though Bank of England was
established in 1694 A.D., the growth of banks accelerated only after the
introduction of Banking Act 1833 A.D. in United Kingdom as it allowed opening of
joint stock banks. Hence there came remarkable changes in the process of
establishing the banking institution. The idea of commercial banks rapidly spread
all over the world only after the establishment of this bank.
The rapid and smooth economic development is possible only when competitive
banking services reaches to every nook and corner of the country. A bank is a
resource for the economic development that maintains self-confidence of various
segments of society by extending credit to people. Some of the common types of
banks which are found in the world are:
1. Central Bank
2. Commercial Bank
3. Development Bank
a) Agricultural Development Bank
b) Industrial Development Bank
c) Rural Development Bank
4. Saving Bank
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5. Exchange Bank
6. Cooperative Bank
7. Others
Labor Bank
Student Bank
Indigenous Bankers
Commercial Banks are the heart of financial system. They hold the deposits of
many person, government establishments and business units. They make funds
available through their lending and investing activities to borrowers, business firms
and government establishments. By doing so, they assist both in the flow of goods
& services from the producers to customers and in the financial activities of the
government. They render a large portion of the medium of exchange service and
they are the medium through which monetary policy is affected. This fact shows
that the commercial banking system of a nation is important to the functioning of
the economy.
In a developing country like Nepal, banks play a very significant role with regard to
the country's economic soundness. The government permitted the establishment of
foreign joint venture banks. Following the governments permission, several joint
venture banks were established namely Nepal Arab Bank Limited (NABIL), Nepal
Grindlays Bank Limited (Renamed as Standard Chartered Bank Nepal Limited on
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13th July, 2001) and Nepal Indosuez Bank Limited (Renamed as Nepal Investment
Bank Limited on 30th May, 2002).
"A joint venture bank is the joining of forces between two or more enterprises for
the purpose of carrying and a special operating."
NABIL had a joint venture with Emirates International Bank Limited (EBIL) with
50% equity participation on both sides. Financial institutions had taken 20% equity
shares in which Nepal Industrial Development Corporation (NIDC) had taken 10%;
Rastriya Beema Sansthan had taken 9.67% and Nepal Stock Exchange had taken
0.33%. In May 1995 EBIL sold its entire shares to National Bank Ltd of
Bangladesh but the proportion of equity shares were same. Nabil Bank Limited had
the official name Nepal Arab Bank Limited till 31st December 2001.
To find the correlation between the saving deposit and total credit.
To give the suggestion and recommendations for the betterment of Nabil bank.
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This study is supposed to be helpful to the bank for formulating new plans and
policies as well as revising the existing ones based on the conclusions and
recommendations made. This study is also believed to assist the researchers who
want to know the depository position of NABIL Bank. Besides this study attempts
to provide information on saving deposit and procedures for opening the account in
the NABIL bank.
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Contents
CHAPTER-I INTRODUCTION................................................................................1
1.1 Background of the Study.............................................................................1
1.1.1 Origin of Commercial Banks.....................................................................1
1.2 Origin of the Bank in Nepal.........................................................................3
1.3 Introduction of NABIL Bank.......................................................................4
1.4 Objectives of the study.................................................................................4
1.5 Significant of the study................................................................................4
1.6 Research Design...........................................................................................5
1.7 Limitation of the Study................................................................................5
Bibliography
BIBLIOGRAPHY
Submitted By:
Apsara Bolakhe
T.U Regd. No.: 7-2-0548-0009-2013
Exam Symbol No.:
A Proposal on
Submitted to:
Gyankunj College
Faculty of Management
Tribhuvan University
Kathmandu, Nepal
December, 2016