{"id":26011,"date":"2013-05-18T10:15:15","date_gmt":"2013-05-18T04:45:15","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=26011"},"modified":"2024-04-12T14:18:30","modified_gmt":"2024-04-12T08:48:30","slug":"commercial-banks-vs-other-financial-institutions","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/commercial-banks-vs-other-financial-institutions\/","title":{"rendered":"Commercial Banks vs. Other Financial Institutions"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a ref=\"magnificPopup\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Investment-Bank-3-1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"400\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Investment-Bank-3-1.png\" alt=\"Commercial Banks vs. Other Financial Institutions\" class=\"wp-image-98691\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Investment-Bank-3-1.png 750w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Investment-Bank-3-1-300x160.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/a><\/figure><\/div>\n\n\n<p>\u00a0<\/p>\n<p><strong>Commercial Banks vs. Other Financial Institutions-<\/strong> Apart from commercial banks, there are various other financial institutions (FIs) catering to the country\u2019s needs<\/p>\n<ul>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Development financial institutions: IDBI, IFCI, ICICI at all India level and at state level SFCs<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Investment institutions: LIC, GIC, UTI<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Mutual Funds: UTI and others in the public and private sector<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Non-banking financial companies (NBFCs)<\/span><\/li>\n<\/ul>\n<p>DFIs were set up either under the companies Act 1956 or as statutory bodies under the Acts of Parliament. The distinction between commercial banks and FIs arises because of the following.<\/p>\n<ul>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">In the case of loans, the lending that may be safely undertaken by the bank is conditioned by the fact that in order to create money, banks have to be ready to supply cash on demand for a portion of their deposit liabilities.<\/span><\/li>\n<li><span style=\"font-size: 1rem; line-height: 1.714285714;\">Banks have to be liquid and the bank\u2019s liquidity of an asset depends on the time it takes to turn it into cash without loss. \u2018Shift ability\u2019 means the transition onto the central bank for the ultimate source of cash. Suitability depends on the eligibility rules for different assets for use in obtaining <\/span>re-discount<span style=\"font-size: 1rem; line-height: 1.714285714;\">\u00a0or other facilities at the central bank.<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Commercial banks have confined their operations to short-term or medium-term lending only. The development banks have been specifically set up to provide long-term loans for project\/fixed capital formation.<\/span><\/li>\n<\/ul>\n<div class=\"apply\">\n<p><strong><em>Become Vskills Certified Commercial Banker. Learn the module &#8220;Commercial Banks vs. Other Financial Institutions&#8221;. Try the free practice test!<\/em><\/strong><\/p>\n<h5>Apply for Commercial Banker Certification Now!!<\/h5>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/Certified-Commercial-Banker\" target=\"_blank\" rel=\"noopener\">http:\/\/www.vskills.in\/certification\/Certified-Commercial-Banker<\/a><\/p>\n<\/div>\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.vskills.in\/practice\/commercial-banking\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"961\" height=\"150\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Try-Free-Practice-Test-for-CyberOps-Associate-200-201-CBROPS-2-1.png\" alt=\"\" class=\"wp-image-98667\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Try-Free-Practice-Test-for-CyberOps-Associate-200-201-CBROPS-2-1.png 961w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2021\/01\/Try-Free-Practice-Test-for-CyberOps-Associate-200-201-CBROPS-2-1-300x47.png 300w\" sizes=\"auto, (max-width: 961px) 100vw, 961px\" \/><\/a><\/figure><\/div>\n\n\n\n<p><a href=\"https:\/\/www.vskills.in\/certification\/tutorial\/certified-commercial-banker-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Go back to Tutorial<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Commercial Banks vs. Other Financial Institutions- Apart from commercial banks, there are various other financial institutions (FIs) catering to the country\u2019s needs Development financial institutions: IDBI, IFCI, ICICI at all India level and at state level SFCs Investment institutions: LIC, GIC, UTI Mutual Funds: UTI and others in the public and private sector Non-banking&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[3342],"tags":[9763,9766,9764,9765,9767,4641,3380],"class_list":["post-26011","page","type-page","status-publish","hentry","category-commercial-banking","tag-certified-commercial-banker","tag-certified-commercial-banker-course-outline","tag-certified-commercial-banker-exam-details","tag-certified-commercial-banker-free-practice-test","tag-certified-commercial-banker-tutorial","tag-commercial-banks","tag-commercial-banks-vs-other-financial-institutions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Commercial Banks vs. Other Financial Institutions - Tutorial<\/title>\n<meta name=\"description\" content=\"Learn and know about Commercial Banks vs. Other Financial Institutions. 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