TABLE OF CONTENT
INTRODUCTION…………………………………………………………………………….4-5
What is Bank? ………………………………………………………………………….…5-6
Business of Banking Companies……………………………………………………….…..6-9
Use of the Word “Bank” in Bangladesh …………………………………………..…..……9
Use of the Word “Bank” in other countries and comparison …………………………..….10-12
INDIA…………………………………………………………………………….…10
Sweden………………………………………………………………………………11
U.S.A ……………………………………………………………………………..…12
Conclusion ……………………………………………………………………………..…13
Title
No company other than a banking company shall use the word “Bank” – illustrate from the concept of a number of countries.
Abstract
In this essay, I will focus on the use of “Bank” word. Before that, I will define Bank. I will mention who can use “bank” word and who cannot use. I will refer low of many countries for a clear view of using “Bank” word.
Introduction
A bank is a financial institution, which deals with deposit and advance and other related service. It receives money from those who want to save in the form of deposit and lends to those who need it.[1] Banks have some characteristics, which is very important for a bank to be a bank. Bank have to deal with money i.e. money gives by the depositors. A bank lends out money in the form of loans to those who require it for different purposes. A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts,[2] It also brings bank money in circulation. This money is in the form of cheques, drafts, etc. A bank provides various banking facilities to its customers. They include general utility services and agency services. A bank is a profit seeking institution having service-oriented approach Banking is an evolutionary concept. There is continuous expansion and diversification as regards the functions, services, and activities of a bank. A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money. A bank’s main activity should be to do business of banking which should not be subsidiary to any other business. A bank should always add the word “bank” to its name to enable people to know that it is a bank and it is dealing in money
However,
What is Bank?
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.[3] A bank is a business like a video store, a restaurant, or a skating rink. The business needs to make enough money to pay the people who work there and the cost of things like electricity, paper, and even paper clips.[4]
In order for a bank to stay open, it needs to get many people to put their money in it. Each bank tries to make THEIR bank look better than all of the others by offering services that some other banks might not have. Another way to get more people to put their money in the bank is to pay them interest. Interest is extra money the bank gives you to keep your money there. This means that you earn money on every taka you put into the bank.
In Bangladesh “banking company” means any company transacting the business of banking in Bangladesh, and includes all new banks and special banks;
Explanation.- Any company which is mainly engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause.
p) “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise;
qu) “temporary liability” means any liability other than demand liability;
r) “gold” means gold in the form of coin, whether legal tender or not, or in the form of bullion or ingot, whether refined or not;
s) “register” shall have the same meaning as in the Companies Act.[5]
Business of Banking Companies[6]
In addition to the business of banking, a banking company may engage in all or any of the following forms of business, namely:-
a) the borrowing, raising or taking up of money;
b) the lending or advancing of money either upon or without security;
c) the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hoondees, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates, participation term certificates, term finance certificates, musharika certificates, modareka certificates, such other instruments as may be approved by the Bangladesh Bank, and such other instruments and securities whether transferable or negotiable or not;
d) the granting and issuing of letters of credit, traveler’s checks, and circular notes;
e) the buying, selling and dealing in gold and silver coins and coins of other metals;
f) the buying and selling of foreign exchange including foreign bank notes;
g) the acquiring, holding, issuing on commission, underwriting and dealing in stocks, funds, shares, debenture stock, obligations, participation term certificates, term finance certificates, musharika certificates, modareka certificates and such other instruments and investments of any kind as may be approved by the Bangladesh Bank;
h) the purchasing and selling of bonds, scrips or other forms of securities, participation term certificates, term finance certificates, musharika certificates, modareka certificates and, on behalf of the constituents of the Bangladesh Bank or others, such other instruments as may be approved by the Bangladesh Bank;
i) the negotiating of loans and advances;
j) the receiving of all kinds of bonds or other valuables on deposit or for safe custody or otherwise;
k) providing vaults for the safety of the deposits;
l) the collecting and transmitting of money against securities;
m) acting as agents for the Government, local authorities or any other person;
n) the carrying on of agency business of any description including the clearing and forwarding of goods and acting as a law agent on behalf of customers, but excluding the business of a managing agent or treasurer of a company;
o) contracting for public and private loans and negotiating and issuing the same;
p) the effecting, insuring and underwriting of shares, stocks, debentures, debenture stock of any company, corporation or association and the lending of money for the purpose of any such issue;
qu) the carrying on and transacting of every kind of guarantee and indemnity business;
r) the buying and acquiring of any kind of property including merchandise, patents, designs, trademarks and copyrights,in addition to, at the normal business period of a bank, such or similar transactions as-
1) repurchase by the seller, or
2) selling in the way called purchase on rent, or
3) repayment of outstanding rates, or
4) leases, or
5) sharing out of revenues, or
6) financing in any other way;
s) bringing into possession any property which may satisfy or partly satisfy any of the claims of the banking company and the managing and borrowing of such property;
t) acquiring, holding and managing of any property or any right,title or interest in any such property which may form the security or part of the security for any loans or advances or which may be connected with any such security;
u) undertaking and executing trusts;
v) undertaking the administration of movable and immovable property as executor, trustee or otherwise;
Use of the Word “Bank” in Bangladesh
Every company carrying on the business of banking in Bangladesh shall use the word “bank” or any of its derivatives as part of its name and no company other than a banking company shall use in its name any word calculated to indicate that it is a banking company:[7]
Provided that nothing in this section shall apply to –
a) any subsidiary company of a banking company formed for one or more of the purposes mentioned in subsection (1) of section 26;
b) any association of banks formed for the protection of their mutual interest and registered under section 26 of the Company Act.
Provided further that the Government may, by notification in the official Gazette, and subject to the conditions determined therein, grant the right to use the word “bank” or any of its derivatives as part of its name to any company completely or partly owned or controlled by the Bangladesh Bank, including non-banking companies.[8]
It clearly define that only banking company can use “bank” word , other company don’t have any rights to use this word.
Use of the Word “Bank” in other countries and comparison
INDIA[9]
Use of words “bank”, “banker”,
“banking”, or “banking company “.[10]