Tóm tắt Luận văn Capital mobilization of vietnam bank for agriculture and rural development

CHAPTER 2

THEORETICAL AND PRACTICE BASIS OF

CAPITAL MOBILIZATION OF COMMERCIAL BANKS

2.1. OVERVIEW OF COMMERCIAL BANKS

2.1.1. The concept of commercial banks

There are many different concepts about commercial banks, in

Vietnam, the concept of commercial banks can be generalized as follows:

commercial bank is the type of bank that performs all banking activities

and other business activities in accordance with law for profit target.

2.1.2. The role of commercial banks in the economy

Firstly, a bank is a center for the accumulation of idle capital in the

economy for the purpose of lending for the development of production,

business and other consumption of society.

Secondly, a bank is a major payment center of the economy,

contributing to accelerate the rotation of goods and services.

Thirdly, a bank contributes to regulate and control the monetary and

capital markets; contributing to stabilizing the currency and controlling inflation.

Fourthly, a bank is the international payment center of the economy.

Fifthly, participating in the process of "making money".

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