Services Provided by Commercial Banks

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According to the research findings, it can, therefore, be said that people generally misconceive the term Asset products, considering it as an asset for their business accounts. However, contrary to this thought, these products are actually assets of commercial banks. Basically, the term Asset product is used for Auto loans, House loans, Property mortgages and similar other credit facilities, provided by commercial banks to their customers. These services are considered as an asset of a commercial bank as the bank provides these facilities against some interest charges. Therefore, keeping the conventional definition of an asset in mind, we can easily infer what we mean by the term asset products. It is a very general kind of an asset product. The auto loan is by far a great facility and customers enjoy great facilitation through these auto loans. Analysing this service from customer’s perspective reveals that it is very helpful for blue and white collar workers, who cannot own an automobile on cash payments. Therefore, it helps them to get an important need of transportation in easy installments. Moreover, on the other side, the bank earns interest on the loan which is a valuable addition to the bank’s cash inflow. The facility of property mortgages also lies in the category of asset products. With the help of property mortgage facility, a person can afford to build his own property. This facility helps the person to pay off his property debt in installments, according to his income, against a nominal interest rate. In this way, it is not only useful for the customers, but for the bank also as it earns sufficient interest against its services. Liability products are also worth mentioning services provided by commercial banks. These services are pure opposites of the asset products and include chequing and saving accounts, certificate of deposits and other types of deposit services. The term ‘liability’ is used here because the bank is liable to pay interests to the customers on their deposits.