What is the objective of e-banking?

Answer 1

I guess that depends, doesn't it.... Commercial banks, like many viable financial institutions, operate in the private sector, and by definition all operations present in this sector have a profit motive, and thus seek to make profits by maximising flows of income which should evidentially surpass that of their costs (Economics 101). Commercial banks seek to provide a thorough circulation of money through the economy (i.e. private, public and individual levels) with them acting as the intermedium for this flow of money, in a profitable manner. What I mean by this is, that they consider their short-term and long-term inflows of money, and spread them out to see what time-frames may present problems (to avoid cash flow inefficiencies). Also, commercial banks will open trust, savings and current accounts to consumers and businesses (i.e. a long term loan for a client could be a mortgage, whilst for a business a short term loan could include a bank overdraft), and will use the money from clients to loan it financially to other clients or firms. This will be its main source of income, the incentive here being interest rates for people who lend the bank money (and can deposit it later on) and the incentive for the firm being high intrest rates on loans to firms and consumers. In such a manner, it aims to become profitable and lucrative. Of course, banks can also be used in a more traditional sense and store people's personal values in vaults or safes. Note that, even though commercial banks may help in factors such as economic growth, increased employment, more foreign investment..etc it is not one of their aims, but these are simply results of the banking facilities the banks provides, as banks only consider private benefits (it may be useful to look at social costs and benefits here).

That's my perception on commercial banks, feel free to correct me if I'm wrong, I am certain there are many other functions, but these are all that come to mind right now. I am actually only a IGCSE student, and so my info may only be accurate to a certain degree.

Cheers.

P.S Jannes is a smurf, a.k.a. Johan Van de Struddel.

Answer 2

The objectives of banking laws are:

1. To ensure that banks continue to operate in a fair and impartial manner
2. To ensure that banks continue to operate with the best interest of the customers
3. To ensure that banks continue to operate and do not fail or go bankrupt

Answer 3

The objective of e-banking is to save the trip to the bank. E-banking offers direct deposit, bill pay, and many other options that are done online.

Answer 4

The objectives of a banking system is to open as many monetary accounts as possible. By doing this, the banking system gains revenues.

Answer 5

To make as much money as posible.