Banking is defined as the method of accepting deposits in the form of Cash from some entities with surplus money (lenders and depositors) and lending these funds to the needy entities with need of cash or money (borrowers).
Banking is one of the most important services in financial sector which builds the base of a country. The main functions of banking sector are outlined below
Efficiency of a bank depends on its ability to satisfy its investors and customers by offering better interest rate and services compared to its peers. Their main source of profit is the interest spread between the interest earned from lending and expensed from borrowing of money.